Wednesday, May 19, 2021
Until the last month, the market in the U.S. for special purpose acquisition company (“
SPAC”) IPOs has been booming. For example, in the first three months of 2021, there were 298 IPOs of U.S. SPACs, which raised in aggregate $87.07 billion. That booming market has not included the UK, where during the same period, there were no SPAC IPOs.
U.S. and UK SPAC terms differ in 2 key respects:
in the U.S., SPAC investors are entitled to redeem their entire investment (UK investors are given no right to redeem their shares) at the time of the initial business combination, regardless of whether they vote in favor of the transaction; and
The FCA Consults on UK s Investor Protection Rules for SPACs | Cadwalader, Wickersham & Taft LLP
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