Why the UK is Joining SPAC Boom: Report

Financial Conduct Authority

SPACs have yet to take off in the UK, Raconteur reports. The main reason for this is because of their structure. 

“SPACs are structured differently in the United States compared to the UK. With New York-listed SPACs, investors can redeem their shares if they’re unhappy with the target firm. That’s currently not the case in London, where trading gets suspended once a merger is announced,” explains Nasser Khodri, head of capital markets at FIS.

This investor lock-up means the appeal of doing a SPAC deal in London is not as attractive as it could be. But that could soon be changing. Read more.

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