SUBSPAC

The Daily Dish (7/19/21)

Bill Ackman Drops Universal Music SPAC Deal 

Billionaire investor Bill Ackman announced in a letter to the shareholders of Pershing Square Tontine Holdings that he had pulled plans to purchase a stake in Universal Music Group, after the SEC raised concerns about the transaction.

Under the proposed transaction, PSTH would have purchased a 10% stake in Universal Music, which is the world’s largest record label and is home to artists like Taylor Swift, Lil Wayne and Lady Gaga.  The SEC was concerned if the transaction qualified as an SPAC deal. 

SPACs have drawn a lot of attention from investors over the past year and has been subject to increased regulator scrutiny over the last few months. Ackman acknowledged that the team at Pershing had failed to change the regulators mind about the multilayered deal.

Pershing Square Tontine had planned to invest $4 billion for a 10 percent stake in Universal Music. Pershing Square Tontine now has 18 months to find a new target, unless shareholders give the company more time. Ackman stated that the next deal would be structured as a conventional SPAC merger. 


Gelesis Planning $1.3 Billion SPAC Deal  

Weight management firm Gelesis will merge with Capstar Special Purpose Acquisition Corp, in a deal valuing the company’s at $1.3 Billion valuation. The company is expected to receive around $376 million from the transaction and will list on the New York Stock Exchange on the close of the transaction.

The U.S. Food and Drug Administration approved the company’s flagship product Plenity back in 2019. The pill becomes a substance which expands in the stomach to reduce space available for food, thereby helping people eat less. 


Home Insurance Company Kin Announces SPAC Merger 

Home Insurance company Kin Insurance is going public through an SPAC merger with Omnichannel Acquisition Corp, valuing the combined company at around $1.03 billion.

The company currently operates in Florida, Louisiana and California with a plan for a national expansion after purchasing an insurer that operates in over 40 states. 

The company’s technology first approach enables its customers to insure homes online within minutes. The company is the only pure play digital insurer, with the market being valued at $100 billion.

The company uses algorithms to crunch data points to determine more accurate pricing and create better underwriting results. 


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