Mudrick Capital II in an 8-K filing today said it has terminated its merger agreement with online jewelry dealer Blue Nile. Adding to the intrigue, Blue Nile today announced it will instead be acquired by Signet Jewelers for $360 million in an all-cash transaction.
In the deal with Mudrick II, which was announced just two months ago, Blue Nile had a pro forma enterprise value of approximately $683 million. The transaction was expected to deliver approximately $450 million to Blue Nile — 20% more than the Signet deal, which is expected to close in the third quarter of 2023.
Blue Nile is now on the hook for a $10 million termination fee to Mudrick Capital II.
This is the SPAC’s second deal to collapse in a year. Mudrick II in August 2021 terminated a merger agreement with trqding card company Topps after rival Fanatics was awarded exclusive licensing agreements with unions representing players in Major League Baseball, the National Basketball Association and the National Football League.
Mudrick II is now facing a Sept. 10 deadline to get a deal done. However, the SPAC late last month filed a proxy seeking a three-month extension on the Blue Nile deal. That extension request could still be put to a shareholder vote and, if approved, would give Mudrick II breathing room until Dec. 10. Read more.
