Original source:
Reuters

Two Bill Foley-backed SPACs seek shareholder approval to liquidate

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October 7, 2022
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Jump to heading Two Bill Foley-backed SPACs seek shareholder approval to liquidate

As market unrest dampens interest in acquisitions, two blank-check companies, led by seasoned investor Bill Foley and that have collectively raised over $2 billion in share sales, want to close before the end of the year, the firms' sponsors announced on Monday (3rd of October 2022).

Despite several talks, Austerlitz Acquisition Corp I and Austerlitz Acquisition Corp II (named after the battle, and considered one of Napoleon's greatest military victories), have been unable to find merger partners.

In 2021, both businesses went public. The usual search period for blank check companies to find a business to take public is two years.

The sponsors, however, claimed that returning the money this year rather than waiting for the expiration of the deadline in March 2023 was in the shareholders' best interests and would seek their consent to do so.

As the United States Federal Reserve hardens monetary policy in response to decades-high inflation, special purpose acquisition companies have become one of the largest sufferers of the market sell-off, and the tough rhetoric from the bank's officials has dashed prospects of any respite in the short future.

Investor enthusiasm has also been dampened by legislative uncertainties surrounding the once-popular acquisition vehicles, with numerous SPAC deals being abandoned this year.

In fact, the "SPAC King" Chamath Palihapitiya also announced last month that he was closing two of his SPACs after failing to find a target within the deadline.

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(ENDI Corp. and its affiliated Registered Investment Advisors do not own a position in Austerlitz Acquisition Corp I nor Austerlitz Acquisition Corp II as of October 7, 2022.)

Tags: Bill Foley; blank-check company; SPAC merger; special purpose acquisition company; IPO; IPOs; SPAC; SPACs;

Tags: blank check company; SPACs; SPAC merger; SPAC deals; IPO; stock market; special purpose acquisition companies; SPAC news; SPAC data; SPAC database; SPAC calendar

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