Hedge-fund billionaire William Ackman is dropping plans to use his SPAC to make investments in Universal Audio Group, saying the Securities and Exchange Fee wasn’t confident the deal achieved the guidelines for this kind of motor vehicles.
Mr. Ackman mentioned his expense agency, Pershing Square Holdings Ltd., would in its place choose a stake in Common and turn into a long-term trader in the corporation. The U-turn is a setback for Mr. Ackman, who crafted a very first-of-its-kind pact that established it apart from a wave of other offers orchestrated recently by exclusive-objective acquisition providers.
In June, Mr. Ackmann claimed his SPAC experienced agreed to invest in a 10% stake in Universal from French media conglomerate Vivendi SE for about $4 billion. The offer valued Universal at some $40 billion. Generally, this sort of offers contain a earlier listed SPAC, or blank-verify corporation, merging with an unlisted business, taking it community.
Mr. Ackman’s offer was distinctive: New York Inventory Trade-outlined Pershing Sq. Tontine Holdings Ltd., the SPAC, did not intend to merge with Universal but as an alternative develop into a shareholder ahead of an currently-prepared listing by Common in the Netherlands. Persons common with the make any difference mentioned it was structured that way because of tax and lawful implications for Vivendi, The Wall Avenue Journal documented.
The composition was hailed by some as a feat of economic engineering that also freed Mr. Ackman from some of the typical constraints of SPACs. In yet another departure from the typical SPAC composition, investors weren’t slated to vote on the offer.