SPAC To The Future!

Special purpose acquisition companies ("SPACs") or "cash shells" are back in fashion. We are seeing greater interest than ever before in the use of these vehicles.

SPACs have had a mixed reputation for a while, through no fault of their own. Many readers will be familiar with the saga surrounding Nat Rothschild's £700m LSE listed cash shell, Vallar (which later morphed into Asia Resource Minerals). Vallar was incorporated in 2010 in Jersey for the purpose of acquiring a major business or operational asset in the global metals, mining and resources sector. Which it duly did, in the form of its investment into Bumi Resources and Berau Coal Energy, wellknown names in the Indonesian mining and resources sector. This was followed by several high-profile spats involving the company, its board and some of its more vocal shareholders, culminating in Nat's decision to sell his stake (announced in early June), thus putting an end to his turbulent and expensive five-year