Embraer’s Eve Nears Merger With Zanite SPAC

A shareholder proxy vote on the union has been scheduled for May 6.

Zanite Acquisition Corp. (NASDAQ: ZNTE, ZNTEU, ZNTEW), a special purpose acquisition company (SPAC), has announced a shareholder proxy vote on a planned merger with EVE UAM, Embraer’s eVTOL (NYSE: ERJ) company, that would take Eve public.

This meeting, scheduled for May 6, will allow stockholders who held Zanite’s stock in their portfolio as late as April 11 to vote virtually on the merger. The Zanite board of directors has encouraged shareholders to vote for the merger proposed in the proxy statement.

Both companies expect to complete the merger by May 9, after which Zanite would become “Eve Holdings, Inc.,” and the combined company’s common stock and public warrants would be listed and traded on the New York Stock Exchange under the symbols “EVEX” and “EVEXW,” respectively. 

While Eve Air Mobility would then be publicly traded, Embraer would retain approximately 80 percent of the company.

Strong Support from Investors

In a statement, Zanite expected the transaction to value Eve’s equity at $2.9 billion and would include approximately $237 million of cash from Zanite oAcquisition Corp.—assuming no redemptions—and an additional $305 million private investment in public equity (PIPE) commitment from a consortium investor such as Azorra Aviation, BAE Systems (OTCMKTS: BAESY), Bradesco BBI, Falko Regional Aircraft, Republic Airways, Rolls-Royce (OTCMKTS: RYCEY) and SkyWest, Inc (NASDAQ: SKYW).

Following the combination, Eve will have approximately $512 million that it will use toward gaining certification of its eVTOL. It will also be bolstered by a conditional, non-binding $5 billion order pipeline to deliver 1,735 vehicles to 17 launch customers, fixed-wing and helicopter operators, aircraft lessors, and ride-sharing platform partners.

Eve’s come-to-market approach through Embraer is different from the bevy of eVTOL startups that also went public via SPACs in 2021. In the time since it was founded in 1969, Embraer has delivered more than 8,000 aircraft and is a leading producer of business and commercial jets, which could prove to be a valuable asset in helping Eve bring its product to market. 

Eve’s leadership team all worked prominently at Embraer before transitioning to the air mobility company. Eve’s CEO, Andre Stein, first joined Embraer as a structural engineer in 1997 and ultimately became the head of strategy at EmbraerX, the innovation subsidiary of the Embraer Group.

About the Aircraft

Eve expects its four-seat, multi-rotor pusher eVTOL to be certified by 2025 and to enter commercial service by 2026. With a product roadmap that includes autonomous technology, seating for passengers would increase to six. That would come by 2030. With eight rotors and two pusher propellers, Eve’s expects its eVTOL to fly up to 60 statute miles on a charge.

Eve is attempting to capture a share of the emerging urban air mobility market aimed at developing small, environmentally friendly aircraft for short hops over traffic congested cities. 


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