Lilium NV (LILMF, Financials) shares surged by 268.4% to $0.14 on Monday following the announcement of an asset purchase agreement with Mobile Uplift Corporation GmbH. By early January 2025, the agreement is supposed to let Lilium's subsidiaries restructure and resume operational activities.
Subject to normal conditions, including creditor committee approval, Mobile Uplift Corporation GmbH, a coalition of European and North American investors, will purchase the operational assets of Lilium GmbH and its subsidiary, Lilium eAircraft GmbH under the deal. German bankruptcy legislation will govern the proceeds from the sale; monies will not be sent to the parent firm, Lilium N.V.
The deal's announcement sent Lilium NV's stock price into a strong surge, which reflected fresh investor hope for the company's possible revival. After the announcement, shares—which had suffered under financial reorganization—soared by more than 268%.
Leading the M&A process, KPMG has helped to negotiate financial restructuring of the subsidiaries with possible investors. The agreement was authorized by the creditor's committee, therefore helping to stabilize Lilium's company operations.
With the acquisition scheduled to close in January, the subsidiaries want to leave self-administration processes. Once the procedures are concluded, Mobile Uplift Corporation plans to rehire workers whose contracts were terminated under German law on Dec. 20.
Lilium CEO Klaus Roewe called the arrangement a "major breakthrough," showing hope for the company's capacity to resume business after the purchase complete in January.
