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Simon Property seeks to raise $300M with blank check company filing - Indianapolis Business Journal

Simon Property seeks to raise $300M with blank check company filing FREE NEWSLETTERS January 29, 2021 Indianapolis-based shopping center giant Simon Property Group has formed a blank check company with a target value of $300 million, according to a regulatory filing. The special purpose acquisition company, or SPAC, will be called Simon Property Group Acquisition Holdings Inc., the Jan. 29 filing says. Simon Property Chairman and CEO David Simon will serve as chairman of the SPAC. His 33-year-old son, Eli Simon, senior vice president of corporate investments at Simon Property, will be its CEO. SPACs also known as blank check companies are shell companies with no operations when they go public. They use proceeds from an initial public offering, often along with additional cash raised privately, to buy a business.

What Might Simon Property Group Do with its New SPAC?

Industry insiders say likely logistics companies and e-commerce operators would be likely acquisition targets. Retail REIT Simon Property Group, the country’s largest operator of regional malls, is riding the SPAC wave. We don’t know yet where that wave will take the company, but industry insiders offer a number of guesses. On Jan. 29, Indianapolis-based Simon filed paperwork with the U.S. Securities and Exchange Commission (SEC) to form a special purpose acquisition company, or SPAC. The SPAC, called Simon Property Group Acquisition Holdings Inc., seeks to raise at least $300 million through an IPO. A “blank check” SPAC is a shell company with no operations that’s set up for the sole purpose of raising cash via an IPO and eventually acquiring an existing company. It’s considered a less costly, less complicated fundraising alternative to a traditional IPO.

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