The SPAC Association in a Dec. 3 statement said it opposes provisions of the Build Back Better bill, which cleared the US House last month, saying a tax on stock buybacks would negatively impact SPAC shareholders seeking to redeem shares ahead of a merger.
“While the legislation seems focused on share repurchases at the company’s election, it may hurt shareholders seeking to redeem their capital from SPAC trust accounts at their election, pursuant to their rights enshrined in the IPO prospectus,” said Samir Kapadia, government relations representative for the SPAC Association.
The legislation may also put US-listed SPACs domiciled in the US at a disadvantage versus SPACs based overseas, the association said. Read the statement.
