First Spac set up under new UK rules to close after failing to find merger target
The first company launched under Rishi Sunak’s newly relaxed rules to attract special purpose acquisition companies to London after Brexit has said it will shut down, without finding a suitable merger target.
Hambro Perks Acquisition Company (HPAC) said it had ceased all operations except for the purposes of winding up the company and returning money to shareholders, in a statement to the stock market on Monday.
Sir Anthony Salz, the chairman of the tech investment company, blamed “challenging circumstances” for stock market listings.
Special purpose acquisition companies (Spacs) are cash shell companies that raise money to list on a stock exchange – often with celebrity sponsors – before finding a target in need of funding and merging with them. They offer an easier route for companies to list on the stock market without going through much of the difficult standard listing process.
Spacs became a phenomenon in the two years after the first coronavirus lockdowns, amid a global investment mania. The phenomenon was mostly associated with US markets, where a deluge of listings raised billions of dollars, including for prominent UK-based companies such as the now struggling automotive startup Arrival and the car dealer Cazoo.
Many of those listings ended with investors losing large amounts of money, leading to a sharp decline in the number of Spacs in the past year.
As Boris Johnson’s chancellor, Sunak ordered an urgent review to help London catch up and attract new stock market listings. A key aim of that review was “liberalising the rules regarding special purpose acquisition companies”.
Sunak as chancellor asked for “bold ideas” to revive the fortunes of the London Stock Exchange, which has seen a dearth of new listings – and
Read more on theguardian.com
