SPACs go back, but with no future 1 Jun 2022 A freight firm with little revenue and ambitious projections agreed to a $500 mln blank check merger, while Forbes has called its SPAC tie-up off. Looming regulations have taken the shine off these once-popular deals. Banks and companies who stay the course are taking a risk.
Geely-backed auto SPAC deal revs up too fast 31 May 2022 Unprofitable maker of tech for car cockpits, Ecarx, is going public via a $3.5 bln sale to a blank-cheque firm, but a plan to boost its sales beyond Li Shufu’s marques looks ambitious. The record Chinese deal requires a leap of faith so soon after Didi’s wild listing ride.
“Temptation Island” SPAC dangles drama and sequels 11 May 2022 Banijay, maker of the reality TV show, will merge with betting firm Betclic through a blank-cheque firm, valuing both at 7 bln euros. It’s an odd mix with few synergies, offset by a reasonable valuation. Founder Stéphane Courbit gets a cleaner balance sheet for more deals.
Grindr’s SPAC profile picture is a blur 10 May 2022 The LGBTQ community’s favoured dating app is listing via a merger with a blank-cheque firm run by a major shareholder. The $2.1 bln price tag looks chunky next to peers like Bumble. Besides data security and governance, investors can fret about potential conflicts of interest.
French financial royalty falls flat in music SPAC 19 Apr 2022 A blank-cheque vehicle backed by billionaire François-Henri Pinault and banker Matthieu Pigasse struck a $1 bln deal with Deezer. The European music streamer has carved out a niche and may fend off Spotify. But the SPAC is paying a higher multiple for a slower-growing company.
How private LBO lenders can compete with banks 8 Apr 2022 From Thoma Bravo to Apollo, non-bank providers of credit are getting busy. No wonder, since they have some $1.2 trln to invest. They charge more than traditional lenders, but for buyout equity investors that's offset by higher risk tolerance and leverage than banks can offer.
Be ready for a wave of embarrassing DMs 8 Apr 2022 Citigroup is pausing work on blank-check vehicles. The SEC is investigating block trades. And Elon Musk’s Twitter stake and appointment to the board are raising eyebrows. As in past moments of market turmoil, sloppy communications behind the scenes may later lead to red faces.
Moped charger gets trapped in electric-car traffic 7 Apr 2022 Shares in Engine No. 1-backed Gogoro have jumped 16% since this week’s debut, adding zip to the Taiwanese battery-swapping scooter maker’s valuation. Yet it trails most car-charging outfits. There are risks, but Asia’s reliance on two-wheelers warrants a narrower gap.
Fosun fashion deal hangs on ‘Made in China’ label 23 Mar 2022 The conglomerate is showcasing its Lanvin-led collection of upscale brands in a Primavera-backed New York SPAC. The $1.9 bln valuation, impressive growth and international flair should make this mini LVMH wannabe prêt-à-porter. Chinese red is a tricky shade for investors, though.
Shell company digs deep for Glencore copper 18 Mar 2022 Cash and potential new equity cover only half the $1.1 bln Metals Acquisition is paying to buy an Aussie mine from the commodities giant. A raft of debt and some future revenue will plug the gap. Copper’s role in the energy transition makes the financial engineering worthwhile.
Gary Cohn lottery deal gives investors extra plays 24 Jan 2022 The former Goldmanite's SPAC is merging with Allwyn, implying an $8 bln market cap for the European lottery operator. There's a novel twist: Bonus shares will go to owners who don't redeem their stock. It should help an already sensible-looking bet get over a common SPAC hurdle.
Asia comes late, with hangups, to the SPAC party 13 Jan 2022 Two blank-cheque companies are listing in Singapore. Share sales will trickle out of Hong Kong too. Yet strict rules set in both centres suggest neither will match New York’s wild success. That’s fine if it protects a repeat of the region’s past disasters with shell firms.
Fanatics takes Topps at rock bottom 4 Jan 2022 The flashy new winner in U.S. collectibles is buying its old-school rival’s unit. It comes months after Fanatics effectively busted Topps’ deal to merge with a SPAC by grabbing the official American baseball-card business from 2026. Now Fanatics is sweeping up its victim, too.
SPAC deal hiccups are rarer than they ought to be 4 Jan 2022 EToro, an Israeli rival to retail trading platform Robinhood, just cut its worth by over 15% in a deal with a blank-check company. Stretched valuations suggest there should be more rejigs like this in SPAC world. But sponsors have powerful incentives to forge ahead regardless.
The Exchange: Riding the high-tech fitness boom 4 Jan 2022 Signa Sports United is a network of web shops and fulfilment systems for cycling, team sports and outdoor kit. Its CEO Stephan Zoll speaks to Dasha Afanasieva about going public through a Ron Burkle-backed SPAC, and how punters are spending big on sophisticated bikes and rackets.
Pumped IPO market has slow puncture 28 Dec 2021 Listings on U.S. markets trashed prior records to raise over $300 billion in 2021, fueled by blank-check fever and tech newbies. Examined closely, it isn’t as bubbly as 1999-2000. But even ignoring SPAC indigestion, the performance of newly public shares points to a slowdown.
Flying car SPAC paves pristine highway in the sky 22 Dec 2021 Embraer’s airborne taxi unit Eve is going public by merging with Zanite Acquisition. It ticks every box for a blank-check deal in the red-hot electric vehicle market, including a long list of pre-orders and blue-chip backers. The only problem is that its market doesn’t exist yet.
Byju’s SPAC turns into India’s $48 bln IPO problem 20 Dec 2021 New Delhi is yet to allow companies to list directly overseas, so ed-tech star Byju’s is mulling a U.S. debut via a merger. Other startups will probably get creative too. It’s similar to the regulatory grey area that China’s tech giants exploited but are now paying the price for.
Byju’s SPAC deal is straight out of the textbook 16 Dec 2021 India’s edtech startup has an offer to go public at a $48 bln valuation. SPAC sponsor Michael Klein would invest in a private placement too, adding credibility to sales forecasts. Byju’s copies Grab’s deal outline, but growing U.S. revenue could help it fare better.
SoftBank struggles to crack the SPAC formula 15 Dec 2021 Companies backed by the Japanese tech investor that went public using blank-check vehicles have had mostly disappointing results. Now that a SoftBank-sponsored SPAC has unveiled its first target, investors will find out whether Masayoshi Son’s team is a better buyer than seller.