Bill Ackman, Pershing Square Capital Management CEO, speaking at the Delivering Alpha conference in NYC on Sept. 28th, 2023.
Adam Jeffery | CNBC
Billionaire investor Bill Ackman said Friday that U.S. regulators have approved his unique special purpose acquisition company structure, and he’s ready to hunt for a deal.
Investors in Ackman’s unfruitful SPAC, known as Pershing Square Tontine Holdings, got a tradable right to participate in a future deal, and now it’s closer to becoming a reality. The Securities and Exchange Commission has approved what Pershing Square’s CEO called a SPARC – a special purpose purchase rights company – in which he informs investors about the acquisition before they commit funds. We promise to answer your question quickly. Many have claimed that the traditional SPAC can be inefficient for shareholders and expensive. Shell corporations that are listed on the stock exchange for the purpose of buying a private company, and then taking it public within two years. The SPARC will soon distribute special purpose acquisition rights to former Pershing Square Tontine securityholders at no cost. Ackman raised $4 billion through the largest-ever SPAC but returned it to investors when he failed to find an appropriate target company. As interest rates stabilize, the market, as well as IPOs, have showed signs of rebound.
Pershing Square said the SPARC will immediately begin to pursue a merger with private, high-quality, growth companies. It is targeting companies who seek to raise a minimum of $1.5 billion of capital, the company said.
Ackman’s Pershing Square funds could commit a minimum of $250 million and up to $3.5 billion as anchor investors in the potential transaction, the company said.