By Sam Boughedda
Investing.com — Shares of Fluor Corporation (NYSE:FLR) rose 9% Tuesday after NuScale Power agreed to go public through a merger with the special purpose acquisition company Spring Valley Acquisition Corp (NASDAQ:SV).
A SPAC, also known as a blank check company, is a listed shell company that aims to merge with an unlisted company to take it public. The news is relevant to engineering and construction giant Fluor as it is a majority shareholder in NuScale. Spring Valley Acquisition shares are up around 1% following the announcement.
The deal is expected to close in the first half of 2022, with the combined company expected to be known as NuScale Power Corporation, with an enterprise value of $1.9 billion.
NuScale will gain proceeds of up to $413 million to bolster and speed up the commercialization of its SMR technology. The proceeds include a $181 million private investment in public equity (PIPE) anchored by Samsung (KS:005930) C&T Corporation, DS Private Equity, Segra Capital Management and Pearl Energy.
Meanwhile, Fluor expects to control approximately 60% of the combined company, which is a positive for Fluor shareholders. In addition, NuScale said Fluor will remain a partner providing engineering services, project management, administrative and supply chain support.