Luxury billionaire Bernard Arnault has joined the hordes of investors and celebrities who are releasing blank check corporations and partnered with former Italian monetary corporation chief UniCredit to publish a SPAC.
The fourth richest user in the world and owner of LVMH has partnered with former UniCredit CEO Jean Pierre Mustier to create a target acquisition company aimed at “innovative” European monetary companies.
A special purpose acquisition company, or SPAC, is an entity that exists to publicly trade to raise funds, hoping to locate and merge with a target company to make it public.
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Mustier and former Bank of America banker Diego De Giorgi will be SPAC’s operating partners, which will be Pegasus Europe and will be indexed in Amsterdam, according to the Financial Times.
Tikehau Capital and Arnault’s Agache Financial Holding Company will be strategic and monetary sponsors. An issue through Tikehau said they would “bring significant resources and support to the company. “
Arnault, which owns brands such as Christian Dior, Louis Vuitton and Givenchy, is the newest on a long list of famous SPAC sponsors. The head of hedge funds, Bill Ackman, filed a $4 billion SPAC last year, while former Credit Suisse boss Tidjane Thiam has one on the job.
Former Commerzbank chief Martin Blessing is reportedly making plans to list a phantom company in Amsterdam.
“There is a need in Europe for expansion capital,” Mustier told Bloomberg TV on Monday. He said sponsors “share the same vision, bringing capital to corporations in Europe. And we choose, of course, the monetary sector to do so. “”
The four sponsors plan to buy at least 10% of SPAC’s shares at the time of the IPO, Tikehau said, and participate in a “substantial futures acquisition agreement. “
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