Paris Gets Into SPAC Trend With 360 Disruptech EU Listing
Paris will be the recipient soon of a blank-check company for technology investments, the latest sign that they're not immune to the recent special purpose acquisition company (SPAC) trend, according to a Thursday (March 25) Bloomberg report.
Looking to join in the investment craze is 360 Disruptech EU which wants to raise 250 million euros or $295 million in a private placement before shares begin trading in May.
The company plans to sell around 25 million units, it told Bloomberg.
The SPAC is being formed by 360 Capital Partners. That company was an early investor in Yoox, the fashion retailer, and Withings, the connected device company acquired by Nokia.
The company, newly listed, plans to look for European tech companies with an equity value of 1 billion to 4 billion euros.
CEO Nader Sabbaghian said European SPACs have become a fast and reliable source for growth capital.
In addition, 360 Capital general partners Fausto Boni and Francois Tison will be joining as chairman and chief financial officer respectively.
The Bloomberg report says 360 Capital will continue to manage its own investments and plans to help the new company with due diligence.
There are still far more U.S. SPACs than European ones. The U.S. reported almost 300 SPAC listings just this year so far. But investors are becoming interested in the European SPACs and the new category has been garnering attention. There has been special interest in the Netherlands thus far from U.S. investors, with three so far and another in the works. Germany has three and Paris now has one.
In addition, U.S. blank check firms are also taking more interest in European companies, with the co-founder of German-based Rocket Internet announcing plans to list a SPAC in New York, that will look for technology deals outside the U.S., Bloomberg said.
Europe has been looking at Amsterdam as a hub for SPACs, with that city being chosen for its "deep volume" of European equities. With Brexit, some of the London shares and derivatives trading ended up moving to Amsterdam. And PYMNTS wrote that the top brass behind SPACs have been attracted to the Dutch capital for its flexibility and global reputation.