The Week In SPAC News: BuzzFeed Hit With Wave Of Withdrawals Ahead Of Merger Closing

In SPAC news this week, BuzzFeed is not expected to raise significant cash through its public listing since investors in the SPAC with which it is merging, 890 5th Avenue Partners, are reportedly withdrawing the bulk of their investments. Meanwhile, Selina Hospitality announced it will go public through a BOA Acquisition combination.

Wave of Withdrawals

BuzzFeed in not expected to raise significant cash through its public listing since investors in the special purpose acquisition company with which it is merging, 890 5th Avenue Partners (ENFA), are withdrawing the bulk of their investments, The Wall Street Journal's Benjamin Mullin and Amrith Ramkumar reported on Thursday afternoon, citing people familiar with the matter.

BuzzFeed is now expected to receive only a fraction of the $287.5 million held by the SPAC as it gets set to begin trading following a Thursday shareholder vote on the deal, people familiar with the matter told Mullin and Ramkumar.

On Thursday evening, 890 5th Avenue Partners announced that its stockholders approved the proposals that were conditions to the closing of the previously announced business combination with BuzzFeed at a special meeting of stockholders. The closing of the business combination is expected to occur about Dec. 3, 2021, subject to the satisfaction or waiver of all closing conditions.

Following the closing of the combination, the combined company will be known as BuzzFeed and its shares of Class A common stock are expected to commence trading on The Nasdaq Stock Market LLC under the symbol 'BZFD' on Monday, Dec. 6. The closing of BuzzFeed's previously announced acquisition of Complex Networks is expected to occur on the same day as the closing of the business combination.

The transaction is expected to raise at least $166.2 million from a combination of 890 trust proceeds and fully committed convertible notes. 890 shares closed at $9.91 per share on Dec. 2, 2021, and stockholders who elected to redeem will receive approximately $10.00 per share, the SPAC noted.

Amex SPAC Deal

On Friday, American Express Global Business Travel announced its entry into a definitive business combination agreement with special purpose acquisition company Apollo Strategic Growth Capital (APSG). The combined company plans to list on the New York Stock Exchange under the new ticker symbol 'GBTG.'

Zoom Video (ZM), Sabre (SABR), and HG Vora are among a new group of investors committed to joining Global Business Travel's private investment in public equity, or PIPE. Upon the closing of the transaction, these companies will join American Express (AXP) and Certares as shareholders.

Under an 11-year agreement to take effect upon closure of the transaction, Global Business Travel will continue to have the right to use the American Express trademark in connection with the American Express Global Business Travel and American Express GBT Meetings & Events brands. The transaction implies a pro forma market capitalization of approximately $5.3 billion and a pro forma enterprise valuation of approximately $5 billion for GBT, assuming no redemptions by Apollo Strategic Growth's shareholders.

Current GBT common equity holders are expected to roll their existing equity holdings into the combined company. The transaction is expected to provide up to approximately $1.2 billion in gross proceeds. Upon the closing of the transaction, the combined company will be renamed Global Business Travel Group, and will continue to conduct its day-to-day business under its existing name and brand American Express Global Business Travel.

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