SPACs

TPG-backed vacation deal is a worthy destination

29 Jul 2021

One of the private equity firm’s SPACs is merging with Vacasa in a $4.5 bln deal. The firm helps owners list and manage their vacation properties including on Airbnb. The management is experienced, the concept is solid and Vacasa could be a strategic fit for others down the line.

SPAC sheriff shows up not a moment too soon

29 Jul 2021

The U.S. Department of Justice accused electric-truck maker Nikola’s founder Trevor Milton of making false and misleading statements. He had already stepped down from the $5 bln firm. But investors have started pushing back elsewhere. These are needed steps to legitimize SPACs.

Apollo SPAC offers cheap ride on EV hype freeway

28 Jul 2021

Electric vehicle charging group Allego is listing through one of the buyout firm’s blank-cheque companies for $3 bln. It’s a crowded space, but a valuation multiple of 5 times 2024 sales is less racy than rivals. Still, only booming battery car demand will avoid a short-circuit.

Real-estate SPAC deal pushes valuation boundary

26 Jul 2021

Peter Thiel and Richard Li’s blank-cheque firm is buying Southeast Asia-focused PropertyGuru in a tie-up worth $1.8 bln. That’s roughly double its failed 2019 IPO and a roof-raising 52 times EBITDA. Rupert Murdoch’s REA is also involved. The price is high for this neighbourhood.

Capital Calls: Covid fibs, M&A flop, Hard seltzer

23 Jul 2021

Concise views on global finance: Forcing social media to take down vaccine misinformation is a good step on U.S. content rules. Meanwhile, a German real estate deal fails to get enough shareholder votes, and Boston Beer’s hard seltzer sales fizzle.

Capital Calls: BBQGuys go easy on the hot sauce

20 Jul 2021

Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.

Ackman music SPAC flop makes second album trickier

19 Jul 2021

The billionaire’s $4 bln blank-cheque vehicle will seek a new deal after U.S. regulators questioned its purchase of 10% of Universal Music. The false start could put off future targets. For all its investor-friendly features, the vehicle’s backers may end up singing the blues.

Zegna’s SPAC deal offers discounted path to luxury

19 Jul 2021

The Italian maker of pricey men’s suits is shedding its stock market aversion to list in New York via a blank-cheque company. At an enterprise value of $3.2 bln, it’s more affordable than most peers. Still, investors have to trust its ability to navigate the shift to casualwear.

SPAC’s legions are ripe for healthier discernment

16 Jul 2021

Investors have lost their heady enthusiasm for the typical blank-check vehicle. Higher and lower quality sponsors may be seeing their capital-raising fortunes diverge. There’s evidence sponsors affect longer-term performance, too. A winnowing would be good for the market.

Capital Calls: Intel, SPAC lobby

16 Jul 2021

Concise views on global finance: Buying GlobalFoundries would boost Intel’s ambitions to make chips for other firms, but spinning it off afterward might please investors more; a new D.C. group sets up shop to defend the blank-check craze.

Aurora could be biggest fish in a faraway pond

16 Jul 2021

The self-driving firm is going public in a $13 bln blank-check deal, and at a premium to rivals Embark and TuSimple. Aurora may deserve one based on its technology pedigree and partnerships with the likes of Toyota. But all may be underestimating when the market arrives.

Tony Hayward’s SPAC suits green fans and amnesiacs

15 Jul 2021

Ten years after floating his last shell company, the ex-BP boss has launched a new $175 mln vehicle. A solid plan to invest in the energy transition is promising. Investors who lost 90% of their capital after Hayward bought Genel Energy will hope he has learned from his mistakes.

European SPAC booking offers uncertain reward

15 Jul 2021

Vacation rental company HomeToGo will go public through a deal with blank cheque vehicle Lakestar, the first in Germany. The 1.2 bln euro valuation isn’t greedy, and the structure is more friendly than some U.S. peers. Still, investors are making a bold punt in a crowded sector.

In SPACs, everyone can hear you scream

14 Jul 2021

Space-transit company Momentus, its backers and blank-check acquirer have all been thwacked by the SEC for misleading claims. One of SPACs’ raisons d’etre is to open up early-stage companies to more investors. The price is an expanding constellation of losers if things go wrong.

Car-battery SPAC deal is joyride at electric price

13 Jul 2021

U.S. auto charge maker SES Holdings is going public via a merger with Robert Friedland’s blank-cheque vehicle at a $3.3 bln valuation. That’s chunky given a controlling founder and zero near-term sales. Investors must hope big backers like General Motors help swerve potholes.

MSP’s $33 bln listing stretches SPACs to the limit

12 Jul 2021

MSP Recovery dogs insurance firms for healthcare payments the government was forced to pick up. In a dysfunctional U.S. industry, that’s a smart mission. But it’s complex, hard to value and has no real peers. That, plus other unanswered questions, calls for a very strong stomach.

Bob Diamond SPAC takes aim at his former employer

8 Jul 2021

The former Barclays CEO’s blank-check firm is merging with digital-currency operator Circle. Its cheap transactions may one day threaten traditional banks' core business. But a $4.5 bln valuation is premised on breakneck growth, and regulators could easily spoil the party.

Satellite image IPO race is growing crowded

7 Jul 2021

Planet Labs’ merger with a blank-check firm values the Google-backed company at $2.8 bln. Making rapidly updated images of the planet searchable may unlock a big market and launch costs are falling. But these are the same reasons why multiple rivals are popping up on the radar.

Nextdoor may struggle to keep up with Joneses

6 Jul 2021

The neighborhood social network is merging with a SPAC in a $4.3 bln deal. Sure, it’s useful to communities posting about yard sales and missing pets. But it’s not profitable and its model is easily replicable - by Facebook. Nextdoor may be living beyond its means.

TPG, waiting out first IPO boom, may ride another

1 Jul 2021

The private equity firm David Bonderman and Jim Coulter founded watched peers like KKR and Apollo ride into public ownership and extreme riches with the last market wave. Waiting, and watching rivals deal with growing pains and generational succession may prove to be a good call.