ByA plan by an Irish-led “blank cheque” company listed in New York to merge with a Belgian-owned technology company in a $1.74 deal has been abandoned, amid heightened volatility in financial markets.
Telesign’s Brussels-based parent Proximus said in a statement shortly before midnight on Thursday that the merger, which would have left it with a 66 per cent stake in the combined entity, has been terminated. There were already signs of problems in the lead-up to the announcement, as Wall Street’s recent love affair with Spacs faltered in the past six months as global equity markets slumped. NAAC postponed two shareholder meetings on the deal, scheduled, respectively, for May 18th and June 1st.
About 600 Spacs that went public since mid-2020 are still trying to complete deals, according to financial data group Dealogic. Many of these will not find targets before 24-month windows close and Spacs have to return cash to their own investors.