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I guess we know the answer. Looks like there' s some smart money investing in Singaporean stocks after all.
So Pegasas is only returning S$5.02, so why is Novo Tellus trading higher?
Perhaps they genuinely were close to a deal in December which has since fell away. If so I would rather they say something than nothing - people understand that plans can change.
That said, it is not a surprise and almost certainly a good decision to wind up. Next question is what is the wind up value?
That said, it is not a surprise and almost certainly a good decision to wind up. Next question is what is the wind up value?
Why did they clarify this and just a few weeks later announce they will not proceed? Should have just kept quiet.
SmallSmall ( Date: 21-Dec-2023 08:34) Posted:
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Novo Tellus says will not de-Spac, citing market conditions
NOVO Tellus Alpha Acquisition : NTA +0.41% (NTAA) will not conclude a business combination after &ldquo careful consideration and thorough evaluation of potential targets&rdquo , and taking into consideration current market conditions.
The special purpose acquisition company (Spac) made the announcement on Thursday (Jan 11), ahead of the Jan 26 deadline or 24 months from the company&rsquo s listing date on Jan 27, 2022.
NTAA said it will announce details of the process to redeem its issued outstanding Class A shares in due course.
There will be no redemption rights with respect to founder shares, nor redemption rights or liquidation distributions that would come with the company&rsquo s warrants, including private placement warrants.
NTAA is backed by industrial technology buyout fund, Novo Tellus Capital Partners.
The counter ended Wednesday flat at S$4.93.
Singapore-listed Spacs including NTAA have two years to announce their potential business combination, which is also known as a de-Spac transaction. If the Spac is unable to find a suitable acquisition target, it is required to dissolve and return the funds to investors.
In late December 2023, Tikehau Capital&rsquo s Pegasus Asia also announced it would not de-Spac &ldquo after considering macroeconomic and market conditions&rdquo .
Both NTAA and Pegasus Asia&rsquo s announcements confirmed an earlier media report that these two Singapore Exchange-listed Spacs were to be dissolved.
This also makes Vertex Technology Acquisition Corporation the sole company among its peers to conclude a de-Spac transaction following its merger with livestreaming platform 17Live on Dec 8, 2023.
I think it' s possible for the manager to extend the life of the SPAC if they can persuade enough shareholders to vote for it.
The board of directors (the &ldquo Board&rdquo ) of Novo Tellus Alpha Acquisition (the &ldquo Company&rdquo ) refers to press reports that the Company is not looking to merge with any target companies and is instead seeking to dissolve. The Board wishes to clarify that the above-mentioned press reports are inaccurate.
The activities to identify an optimal business combination target are ongoing. The Company has not identified a conclusive business combination target and has not entered into any written binding acquisition agreement in relation to a potential business combination, and will, in compliance with its disclosure obligations under the SGX-ST Listing Manual, promptly make the relevant disclosures at the appropriate time.
The activities to identify an optimal business combination target are ongoing. The Company has not identified a conclusive business combination target and has not entered into any written binding acquisition agreement in relation to a potential business combination, and will, in compliance with its disclosure obligations under the SGX-ST Listing Manual, promptly make the relevant disclosures at the appropriate time.
Novo Tellus Alpha Acquisition SPAC IPO' s public tranche 7.6 times subscribed
THE public offer tranche of Novo Tellus Alpha Acquisition (NTAA) was 7.6 times subscribed at the close of its initial public offering (IPO), it said on Wednesday (Jan 26).
The international placement tranche of 9.5 million units was about 3.1 times subscribed. Overall, the offering was 3.4 times subscribed.
Units are expected to start trading on the Singapore Exchange mainboard at 9 am on Thursday.
NTAA, Singapore' s third listed special purpose acquisition company (SPAC), had offered 30 million units at S$5 apiece.
Some 13 cornerstone investors had also subscribed to 16 million units. The two largest cornerstone investors, Affin Hwang Asset Management Berhad and Temasek-owned Venezio Investments had subscribed for a total of 4.3 million units.
NTAA' s sponsor group consists of the sponsor general partner New Earth Group 2, Novo Tellus Capital Partners and the private equity funds which it advises, Novo Tellus PE Funds 1 and 2.
Each of the IPO units consists of 1 Class A share of NTAA, and half a public warrant. A whole public warrant entitles the holder to subscribe for 1 Class A share at the price of S$5.75 apiece. Holders of these Class A shares will be able to redeem their shares for a pro-rata portion of the SPAC' s account in escrow at the business combination vote.
Novo Tellus PE Fund 2 committed approximately S$7 million of at-risk capital through the subscription of warrants in a private placement of 14 million warrants at S$0.50 per warrant.
The over-allotment option has been exercised with 2 million units allocated to the international offering.
The gross proceeds of S$150 million (excluding the over-allotment option) will primarily be used for the consummation of the initial business combination, the payment of deferred underwriting commissions, and payment to independent shareholders who have properly elected to redeem their Class A shares.
Loke Wai San, executive chairman and chief executive of NTAA, said that the SPAC will " endeavour to deliver a quality business combination that will create sustained value for NTAA unitholders" .
Said Keith Toh, executive director and president of NTAA: " Novo Tellus is highly selective as an investor. We seek not just to find a distinctive de-SPAC opportunity, but more importantly, we look to partner closely with the target company to build strong returns over time, to grow earnings and provide investor support for the long term."