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Richard Branson Joins Blank-Check Frenzy with $400 Million Deal
Richard Branson is the latest billionaire to join the blank-check listing party after he sold his space tourism business to one. VG Acquisition Corp. filed Wednesday to raise $400 million in a special purpose acquisition company, or SPAC. The company plans to sell 40 million units at $10 apiece, according to its filing with the U.S. Securities and Exchange Commission. The company said it would look at a host of businesses to target for a merger. The possibilities could be as varied as travel, financial services, music and renewable energy. it said.
Branson, founder of the VG Acquisition, sold Virgin Galactic Holdings Inc. in October to a blank-check company started by Chamath Palihapitiya and venture capital firm Hedosophia in a deal that set off this year’s SPAC listing spree. Branson and the management of VG Acquisition bought 11.5 million shares or 20% of the shares outstanding for $25,000 in a common payout known as founder shares or promote – a compensation to sponsors for finding a deal. Investment heavyweights like Bill Ackman have since set up their own SPACs. The $4 billion initial public offering by Ackman’s SPAC in July is the largest ever by a blank-check company. Buyout firm Apollo Global Management Inc. also filed Wednesday to raise $750 million through a blank-check company, Apollo Strategic Growth Capital.
Credit Suisse Group AG is leading the offering by VG Acquisition. The company plans to list its units, consisting of one Class A ordinary share and one-third of a redeemable warrant, on the New York stock exchange under the symbol VGAC.U.
https://www.bloomberg.com/news/articles/2020-09-16/richard-branson-joins-blank-check-frenzy-with-400-million-deal