Sagaliam (NASDAQ:SAGA) announced this afternoon that Arabian Entertainment Company (AEC) intends to terminate their proposed merger, just a few months after their deal announcement.
On February 23, 2023, the company notified Sagaliam that since the SPAC did not receive subscription agreement commitments before December 15, 2022, it has chosen to terminate the merger.
AEC contend that as a result of the termination, the business combination agreement obligates Sagaliam to pay a breakup fee of $1 million no later than two business days following the termination. But, the SPAC contends that it has no obligation to pay a termination fee.
Barry Kostiner, the CEO of Sagaliam, has disputed the validity of the fee and instead proposes that there be an acquisition of Sagaliam Sponsor LLC by an independent third party with the intent of presenting an alternative acquisition to AEC. The company and Sagaliam are currently in discussions regarding any termination fee payment.
Pursuant to the original business combination agreement, AEC is allowed to terminate the merger at any time prior to the merger effective time by written notice to the SPAC if it has not received commitments in the form of mutually-agreed subscription agreements for at least 50% of the minimum cash amount of $25 million.
Sagaliam announced the $227 million deal with AEC in November 2022. The SPAC brought about $116.5 million from its trust into the deal and planned to supplement this with a $35 million PIPE, but did not file documents showing that one has been finalized.
The Jeddah, Saudi Arabia-based company is a regional franchisee of Applebee’s and Ocean’s Basket restaurants with plans for live entertainment projects in the works.
Exciting new things are coming for SPACInsider subscribers, and some have already arrived! This summer, SPACInsider is unveiling the SPACInsider Alerts App on iOS with an Android launch soon to follow. The app allows subscribers to stay ahead of the SPAC market with real-time, customizable filing alerts with instant notifications landing the moment that a...
At the SPAC of Dawn Futures are largely green with the CPI reading coming up, and several SPACs and de-SPACs have cause to feel bullish regardless of what the reading states. Pharma and beauty company Longevity Health (NASDAQ:XAGE) announced it will acquire plasma collection firm True Health ahead of market open in news that has...
Silver Pegasus Acquisition Corp. (NASDAQ:SPEGU) announced the pricing of its $100 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “SPEGU”, Tuesday, July 15, 2025. The new SPAC plans to search within the technology sector, with a focus on semiconductors and systems solutions. Silver Pegasus Acquisition Corp.’s management...
Cayson Acquisition Corp. (NASDAQ:CAPN) has entered into a definitive agreement to combine with boutique investment firm Mango Financial for $300 million in equity consideration. Hong Kong-based Mango provides a range of M&A and equity capital markets advisory services to clients considering listings in China and the US. The combined company is expected to trade on...
Trailblazer (NASDAQ:BLZRU) has filed for a $200 million SPAC to bring a first-time team to market with serial sponsor terms. The new SPAC is offering investors a 1/3 warrant in each unit and it is the first SPAC filed so far this month with 24 months on its initial transaction clock. All other July SPACs...