De-SPACs Back In Favour?

With a noticeable uptick in new de-SPAC mandates, Appleby Cayman Islands partner Dean Bennett provides commentary on what he is seeing in the market and key points for SPAC management teams and target companies to keep in mind when contemplating a business combination transaction with a Cayman Islands SPAC. Appleby have a leading offshore SPAC practice and have been involved in some of the largest and most complex de-SPAC transactions in recent years, including most recently acting for Black Spade Acquisition Co on its business combination with VinFast Auto Ltd. in one of the largest deals of 2023.

WHAT IS A SPAC?

For those new to SPACs (special purpose acquisition companies) or 'blank check companies', briefly a SPAC is a company that is formed to raise capital through an IPO to fund a strategic acquisition down the road, typically within 18 to 24 months. SPACs provide an alternative route to the public markets. The Cayman Islands continues to be the offshore