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Bill Ackman’s “blank check” company, called Pershing Square Tontine Holdings, is seeking to raise as much as $6.45 billion.
- Three billion dollars of the total will be raised from outside investors through an initial public offering, according to a regulatory filing.
- Funds associate with Pershing Square will purchase between $1 billion and $3 billion of additional shares, the filing says.
- If the banks involved in the initial public offering exercise the over-allotment option, it would bring the deal to $6.45 billion.
Billionaire investor Bill Ackman’s “blank check” company is seeking to raise as much as $6.45 billion, in a combination of an initial public offering with investments from Pershing Square Holdings.
The company, called Pershing Square Tontine Holdings, is a special-purpose acquisition company “formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses,” according to a regulatory filing .
The company aims to raise as much as $3 billion from outside investors through an initial public offering, according to the filing. In its IPO, the company is offering 150 million units, which includes one share of common stock and one-ninth of one redeemable warrant for $20.
In addition to the IPO, funds associated with Pershing Square Holdings will purchase between $1 billion and $3 billion in shares, the regulatory document says. In the filing, Pershing Square Tontine Holdings does not specify what sectors it will be targeting going forward.
The deal could be worth as much as $6.45 billion “assuming the additional forward purchase is consummated in full and the underwriters’ over-allotment is exercised in full and assuming no redemptions of the Class A common stock,” the filing said. Citigroup, Jefferies, and UBS are the joint book-running managers on the deal, according to the filing.
“We will have the largest amount of committed capital of any blank check company upon the completion of this offering,” the company said.
SOURCE: PULSE GH