Written by Cláudio Afonso | LinkedIn | X
Castrol, part of the oil giant BP group, announced on Tuesday an investment of $50 million in the Taiwan-based electric scooter company Gogoro as the company sees two-wheelers as “a critical part of the global product portfolio”.
In the first phase of the investment, Castrol Holdings, an affiliate of Castrol, will invest $25 million in ordinary shares of Gogoro resulting in Castrol acquiring approximately 5.72 percent of the outstanding ordinary shares.
This will be followed by a second $25 million investment in the form of a convertible note, contingent upon the completion of certain transactions related to their business collaboration, the statement revealed.
This marks Castrol’s first step towards diversifying its portfolio beyond its traditional lubricants and fluids business under its new ‘Onward, Upward, Forward’ strategy.
“Two-wheelers are a critical part of our global product portfolio, and as our customers transition to electric two-wheelers, the Castrol brand has an important role to play in the ecosystem,” said Michelle Jou, CEO of Castrol.
“Gogoro is a leader in two-wheeler battery swapping, and our investment in Gogoro is a strategic step towards diversifying our portfolio, remaining relevant in our customers’ lives, embracing new opportunities to future-proof our iconic 125-year-old brand, and creating additional value for our shareholders,” he added.
The company has recently secured a another investment of $50 million from Gold Sino Assets Limited. The shares closed at $1.46 on Friday giving the firm a 358.87 million market capitalization.
In late May, the Colombian firm Terpel launched Gogoro’s battery swapping in Bogota Colombia through the Terpel Voltex brand. Amid the announcement, the Colombian company said it plans to expand to 14 GoStations by the end of the year and then to other Colombian cities.
NEVER MISS AN UPDATE
Written by Cláudio Afonso | LinkedIn | X
