At the SPAC of Dawn
Good morning! Watch this space moving forward as a roundup of evening filings as well as news nuggets to nibble on beside your morning coffee.
There are increasing signs that the capital markets and dealmaking are returning to normalcy, but there is still plenty of time for fits and starts before the end of the year.
October has already been the biggest month for global M&A since June 2019 with $139 billion in takeovers logged in the month with a week still to go. This has largely been spurred on by a handful of mega deals, most recently Chevron’s (NYSE:CVX) $53 billion bid for peer Hess Corp. (NYSE:HES), but even that is a show of potentially growing momentum as four of the five biggest deals of the year were announced in the past two months.
Strategic consolidation and private equity activity don’t always spill over directly into the SPAC market, however. On the traditional IPO side, the indicators are mixed. The $17.4 billion in IPO proceeds year-to-date in 2023 already more than doubles the $8.6 billion fetched by companies taking the traditional way to market in 2022.
But median returns on the year for this crop is still an uninspiring -53.3%, according to IPOInsider data. That has ticked up to -16.8% for the 18 IPOs launched since September 1, which is a significant improvement, but still perhaps still not quite enough to convince the markets that the salad days have returned
- TenX Keane Acquisition (NASDAQ:TENKU) has entered into a definitive agreement to combine with Citius Pharmaceuticals’ oncology subsidiary. Citius is expected to retain $675 million in equity in the Citius Oncology spinoff.
News and Rumors
- Bloomberg: Cyxtera Technologies (OTC:CYXTQ), which combined with Starboard Value in 2021, is in talks to sell a large portion of its data centers to Brookfield Infrastructure Partners as it undergoes Chapter II bankruptcy.
- Business Times: Live-streaming platform 17Live, which agreed to combine with Singapore-listed SPAC Vertex Technology, reported its operational losses widened to $118.2 million for the first half of 2023. It blamed this drop on the resumption of normal business activities coming out of the pandemic.
- Infinite Acquisition Corp. (NYSE:NFNT) announced that its board of directors has determined to redeem all of its issued and outstanding Class A ordinary shares, effective as of November 6. The redemption of the shares is expected to be completed on or around November 6 and the per-share redemption price will be approximately $10.78.
- Healthwell Acquisition Corp. I (NASDAQ:HWEL) has postponed the completion vote for its combination with Starton Therapeutics normally slated for October 25. The SPAC has not yet set a new time for the special meeting but the change will extend the time investors have to make redemption decisions. The record date remains September 14.
CF Acquisition Corp. VIII (NASDAQ:CFFE) announced this afternoon that it has completed its combination with B2B software firm Exela. Although shareholders had previously approved the deal during a special meeting on August 24, no specific timeline for its next steps had been disclosed at that time. Additionally, a proposal was passed at the meeting to change...
DUET Acquisition Corp. (NASDAQ:DUET) has signed a business combination agreement with social media firm Fenix 360 at an enterprise value of $610 million. Singapore-based Fenix 360 is developing an app-based social media platform designed for artists to better engage with fans and monetize interactions. The combined company is expected to trade on the Nasdaq once...
PROOF Acquisition Corp I (NYSE: PACI) announced this morning that its shareholders have approved its business combination with private aviation company Volato at a special meeting held on November 28. Approximately 97% of the votes cast at the meeting were cast in favor of the approval of the deal. The SPAC did not disclose redemption...
At the SPAC of Dawn Filings after the bell yesterday provided another three-liquidation day for SPACs bringing this week’s tally to four and extending a streak of five straight weeks with four to five liquidations each week. With 178 SPACs having announced a liquidation so far in 2023, the year’s total number could well exceed...
Plum Acquisition Corp. I (NASDAQ:PLMI) has entered into a definitive agreement to combine with digital transformation company Veea for a total enterprise value of approximately $281 million. New York City-based Veea aims to simplify secure edge computing by improving application responsiveness, reducing bandwidth and data transport costs, and eliminating central cloud dependency. The parties expect the transaction to be...