The only task of the spac companies that have become phenomenon is to raise money for the acquisition.
With its hedge fund enriched billionaire William Ackmanin the spac company founded by the company is nearing negotiations to buy a stake in Universal Music.
In the negotiations, the value of the music company has been determined to be about $ 40 billion, or about 33 billion euros, he says Wall Street Journal relying on sources.
Pershing Square Tontine Holdings, founded by Ackman, is buying a 10 percent stake in Universal Music. If completed, the deal would be the largest spac arrangement to date.
A special purpose acquisition company (SPAC) is a listed investment company that has no business and intends to raise funding from investors to make an acquisition. Ackman’s spac was listed on the New York Stock Exchange last summer.
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Spacit have become a real phenomenon in the United States in recent months.
During the current year, at least 330 spac companies have raised a total of $ 104 billion, or about $ 85.5 billion, according to the Wall Street Journal. Last year, the amount was more than $ 20 billion lower.
The phenomenon has already caused public criticism and disappointment for investors. Criticism has been leveled at, for example, the generous rewards of the original teams, which have not depended on the development of the value of the investment object. In addition, some spac companies have been marked by complex arrangements that investors have had difficulty figuring out.
The Nasdaq, which operates stock exchanges in the Nordic countries, allowed spac listings in March.
This week in Finland the first spac company announced its intention to list On the main list of the Helsinki Stock Exchange. The listed Virala Acquisition Company has been established Alexander and Albert Ehrnroothin family investment company Virala.
Pershing Square said it would pay about $ 4 billion for Universal’s stake, or about $ 3.3 billion. Universal’s owner, the French media group Vivendi, has confirmed that it is negotiating a 10 percent stake in the sale.
Chinese Tencent owns about 20 percent of Universal. Last year, the stake doubled in a deal that valued Universal at € 30 billion.