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From electric carmakers to space tourism to online learning firms, special-purpose acquisition companies have provided an easy route to the public markets for businesses with, generously, a long path to profitability. The SPAC boom is now also smoothing the way for a legacy media company – Britain’s biggest newspaper – to leave the public markets through a wily feat of financial engineering.
Daily Mail and General Trust Plc said las week that the Rothermere family, which founded the right-of-center newspaper 125 years ago, intends to acquire the 64% of the company it doesn’t already own. The offer ostensibly values DMGT’s equity at some 2.9 billion pounds ($4 billion), or a 38% premium to its average share price over the past year not bad going for a company whose core newspaper business is in long-term decline. Yet it may undervalue the Daily Mail parent.
Italy’s Zegna to list in the U.S. with $3.2 billion SPAC deal
FILE PHOTO: Plywood covers the windows of an Ermenegildo Zegna store in Chicago, Illinois, U.S. October 13, 2020. REUTERS/Moe Zoyari
July 19, 2021
By Claudia Cristoferi and Silvia Aloisi
MILAN (Reuters) -Italian luxury group Ermenegildo Zegna will list in New York by combining with a U.S. investment vehicle, giving the menswear company an enterprise value of $3.2 billion and helping it expand in Asia and the United States.
The move is the latest example of an Italian family-owned fashion business luring outside investors to fund expansion, boost marketing spending and compete with bigger players, after the industry was hit hard by the coronavirus crisis.
3 Min Read
MILAN (Reuters) -Italian luxury group Ermenegildo Zegna will list in New York by combining with a U.S. investment vehicle, giving the menswear company an enterprise value of $3.2 billion and helping it expand in Asia and the United States.
FILE PHOTO: Plywood covers the windows of an Ermenegildo Zegna store in Chicago, Illinois, U.S. October 13, 2020. REUTERS/Moe Zoyari
The move is the latest example of an Italian family-owned fashion business luring outside investors to fund expansion, boost marketing spending and compete with bigger players, after the industry was hit hard by the coronavirus crisis.
“We could have remained private for another 100 years, but the timing was perfect and the world of luxury has become very challenging,” Chief Executive Gildo Zegna, 65, told reporters.
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