Shell shock

11 December 2020 By Jennifer Hughes Follow @JennHughes13

Marquee names from Joseph Perella to Shaquille O’Neal have lent some legitimacy to the recent spate of shell companies. One near its expiry date trying to buy parts of scandal-ridden financial outfit Convoy strips away the veneer. It’s a good reminder to be wary of such M&A.

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Convoy Global, a Hong Kong-based pension and insurance services adviser, said on Nov. 25 that it had agreed to a non-binding term sheet with AGBA, a U.S.-listed special purpose acquisition company. Under the deal, AGBA would buy all of Convoy’s so-called platform businesses and 30% of its independent financial advisory unit, for $100 million cash and $300 million in newly issued AGBA shares.

Convoy shares have been suspended since December 2017 and it is fighting efforts by the Hong Kong Stock Exchange to delist it.

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