Bayview Acquisition, a special purpose acquisition company (SPAC), has signed an agreement and plan of merger to combine with trade credit digital transformation solutions provider Oabay.

The deal will create a publicly listed trade credit digital transformation solutions firm in the US.

Following the completion of the merger, the shareholders of Oabay will receive ordinary shares valued at $300m in the newly formed Oabay Holding Company. The combined entity will have an implied initial enterprise value of nearly $393m.

Upon the closing of the proposed business combination, the newly formed company will be listed on Nasdaq.

Oabay’s executive management team is expected to lead the new entity.

Through its fully owned subsidiary in China, Oabay offers trade credit digital transformation solutions that mainly include supply chain finance cloud services and trade credit management cloud services.

By utilising its expertise in accounts receivable factoring and enterprise credit digitalisation for small-to-medium-sized enterprises, the firm provides supply chain financing to critically and strategically positioned companies.

Oabay also streamlines the process to generate credit assets within supply chains for financial institutions and other companies with better efficiency and savings.

The parties said that there is no guarantee that the business combination will be finalised.

Subject to regulatory and Bayview Acquisition and Oabay shareholders’ approval along with other customary conditions, the transaction is anticipated to be completed late this year.

Winston & Strawn is acting as the legal adviser to Bayview Acquisition, with Han Kun Law Offices and Ogier serving as China and Cayman Islands legal advisers to the SPAC, respectively.

For Oabay, Hunter Taubman Fischer & Li serves as the legal adviser with Yingke Law Firm and Ogier acting as China and Cayman Islands legal advisers.