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Klein launches CCC II IPO
Posted on Tuesday, 11 June 2019 13:05
Flushed from the success of merging Churchill Capital (CCC) with Clarivate Analytics last month, Michael Klein is trying his hand at floating another special purpose acquisition company (SPAC) with a view to completing a business combination. Investors in the blank check’s initial public offering (IPO) who held stock through 13th May 2019, when the reverse takeover closed, saw a total return of 51.0 per cent and a 1.5x multiple on their invested capital over the eight-month hold period. Klein has formed Churchill Capital Corp II (CCC II) with a view to floating the SPAC on the New York Stock Exchange via a sale of 40.00 million units at USD 10.00 apiece that includes an overallotment option for a further 6.00 million securities. The sponsor has agreed to subscribe for 10.00 million warrants at USD 1.00 apiece, or USD 11.20 million-worth of convertible scrips if the green shoe is exercised in full, in a private placement due to close simultaneously with the listing. CCC II has set out investment criteria ranging from a business that has historically generated, or has the potential to make, strong and sustainable free cash flow to the ability to grow inorganically through additional acquisitions. The blank check may seek to complete a business combination with an operating company in any industry or sector. CCC II is one of 28 blank checks globally working towards a listing so far this calendar year, as shown by Zephyr, the M&A database published by Bureau van Dijk. At USD 400.00 million, the IPO will certainly be the second-largest, or the largest if the green shoe is exercised in full, by a SPAC in 2019 to date. In the grander scheme of things, the listing will be in the top 50 by a blank check on record, though it would still be worth significantly less than the USD 1.45 billion debut of Justice Holdings in 2011. © Zephus Ltd