Ares Acquisition, X-Energy Announce Strategic Update To Business Partnership Deal

Ares Acquisition Corporation AAC and X-Energy Reactor Company, LLC announced a strategic update to their previously announced business combination agreement that was made in December 2022.

Under the amended terms, X-energy's pre-money equity value has been revised to $1.8 billion from approximately $2.1 billion earlier

Ares Acquisition believes the revised valuation reinforces the long-term value creation opportunity for, and the companies' alignment with, shareholders.

Upon closing the transaction, which is expected to be completed in summer 2023, X-energy will go public via its partnership with Ares Acquisition. The combined company will be named X-Energy and listed on the New York Stock Exchange.

"We reaffirm our support of this business combination and our conviction that X-energy is poised to be a differentiated leader in the global clean energy market," said David Kaplan, Co-Chairman and Chief Executive Officer of AAC.

Institutional and strategic investors have invested or committed up to $148 million in financing in X-energy. The fund, combined with approximately $485 million of cash held in Ares Acquisition Corporation's trust account as of March 31, 2023, will result in $515 million of cash to the combined company balance sheet after fees. 

X-energy's existing equity holders are expected to hold approximately 72% of the issued and outstanding shares of common stock of the combined company.

Price Action: AAC shares closed flat at $10.50 on Friday.

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