Smart Automobile Co., a joint venture between Germany’s Mercedes-Benz and China’s biggest private carmaker Zhejiang Geely Holding Group Co., is considering raising funds as part of its plans to revive the iconic minicar as an all-electric brand, according to people familiar with the matter.
Smart could seek about $500 million to $1 billion in fresh funds by selling a minority stake in the venture, the people said, asking not to be identified because the matter is private. A private fundraising deal for Smart, which is currently valued at roughly $5 billion, could attract interest from other carmakers and strategic investment funds, the people said.
