The Week In SPAC News - Sunday, May 16

Entrepreneur, Idea, Competence, Vision, Target

In SPAC news this week, Wynn Resorts said it is merging its online betting platform Wynn Interactive with a special purpose acquisition company to create an independent public company. Meanwhile, Bird Rides and Switchback II Corporation also announced the signing of a definitive business combination agreement that would make Bird a public company, while Ginkgo Bioworks and Soaring Eagle Acquisition Corp. said they have agreed to a merger.

WYNN TO SPIN OFF ONLINE GAMBLING COMPANY

Shares of Wynn Resorts (WYNN) were in the spotlight on Tuesday after the company said it is merging its online betting platform Wynn Interactive with Austerlitz Acquisition Corporation I (AUS) to create an independent public company.  Upon closing of the transaction, assuming no share redemptions by the public stockholders of Austerlitz I, Wynn Interactive's current shareholders will retain an equity interest in the company of approximately 79%, inclusive of 58% equity interest by Wynn Resorts, Austerlitz I's stockholders will hold approximately 18% and Austerlitz I's sponsor will hold approximately 3%. Following the news, Citi analyst George Choi upgraded Wynn Resorts to Neutral, calling Interactive's spinoff a "value-enhancing" deal.

BIRD RIDES, SWITCHBACK II COMBINATION

Bird Rides and Switchback II Corporation (SWBK), a publicly traded special purpose acquisition company with a strategic focus on the energy transition sector, announced the signing of a definitive business combination agreement that would make Bird a public company, pending Switchback shareholder approval and satisfaction of other customary closing conditions. At closing, anticipated in the third quarter of 2021, the combined company will be named Bird Global and is expected to be listed on the New York Stock Exchange. The transaction implies a pro forma enterprise valuation for Bird of $2.3B. The business combination agreement contemplates that existing Bird shareholders will roll-over and retain 100% of their existing equity, owning approximately 82% of the combined company's pro forma equity. The transaction will enable the combined entity to retain net proceeds of up to $428 million of cash following the closing to fund operations and growth initiatives and for general corporate purposes.

GINKGO, SOARING EAGLE MERGER

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