SPACs snack on chips and wafers

Another special purpose acquisition company has grabbed a semiconductor firm.

Ascend Acquisition Corp., which raised $38.5 million in an IPO in May, said Tuesday it has agreed to acquire ePak Resources Pte. Ltd., a maker of chip handling equipment for semiconductor makers.

SPACs, also known as "blank check" companies, are founded without an operating business. Once they go public, they have 18 months to complete a deal using about 80% of their net assets. SPACs that fail to make an acquisition are liquidated and the cash is returned to shareholders.

Ascend was pretty vague in its S-1, originally filed in February 2006, about what industry it aimed to pursue — the filing only said it might look at the "manufacturing, services or distribution" markets.

With ePak, it gets an eight-year-old, profitable chip equipment maker, with $36.2 million in annual sales, that's been growing at a decent clip.Ascend doesn't have the tech star power of Acquicor Technology Inc., a blank-check company led by Gil Amelio, the former CEO of Apple Computer and National Semiconductor Corp. Acquicor last year announced the $260 million acquisition of Jazz Semiconductor Inc., a specialty chip wafer maker.

Read more >>> view original article @ dealblogs

SPACknowledgement and disclosure form

SPECIAL PURPOSE ACQUISITION COMPANY (SPAC) INVESTMENT DISCLOSURE AND ACKNOWLEDGEMENT

TO: Granite Financial Group, Inc.
FROM: ______________________________________________
ACCOUNT NUMBER: ___________________________________
RE: InterAmerican Acquisition Company, Inc. SPAC Investment

LADIES AND GENTLEMEN:

The undersigned Authorized Agent hereby acknowledges the following information and fully understands the investment in this Special Purpose Acquisition Company (SPAC).

I hereby represent that I have completely read the preliminary prospectus and understand what a Special Purpose Acquisition Company is and what an investment in this product represents.

I understand that the proceeds of this offering will be deposited into a trust account, less the fees and costs associated with the underwriting, until a proposed business combination (proposed acquisition) is identified. I understand that I have the right to vote for or against a proposed acquisition. I understand that if 80% or less of the public stockholders vote against the proposed acquisition, my Organization’s pro rata share of the trust account will be returned to us. I understand that if more than 80% vote for the proposed acquisition and I vote against the proposed acquisition, I will be entitled to convert our Organization’s stock into a pro rata share of the trust account, including any interest earned (net of taxes payable) on their pro rata share, if the business combination is approved and consummated.

I hereby represent that I have the requisite authority to enter orders to purchase, sell or sell short securities of every kind and description for and on behalf of this Organization and to sell, assign and endorse or transfer certificates representing stocks, bonds or other securities registered in the name or for the account of this Organization.

I also represent that I have completed the IPO Certification form indicating that this Organization is eligible to purchase Initial Public Offering shares.

You may follow the instructions of the Authorized Agent in every respect concerning the undersigned’s account with you. In all matters and things aforementioned, as well as in all other things necessary or incidental to the furtherance or conduct of the account of the undersigned, the Authorized Agent is authorized to act for the undersigned and in the undersigned’s behalf in the same manner and with the same force and effect as the undersigned might or could do.

_______________________________ _________________________
Signature of Authorized Agent Printed Name of Authorized Agent
_______________________________ ________________________
Title of Authorized Agent Date

View original form

Euro-SPAC raises €115M

Euronext Amsterdam Welcomes Pan-European Hotel Acquisition Company N.V. - First Special Purpose Acquisition Company Floated In Continental Europe Raises €115 Million

July 19, 2007 - Pan-European Hotel Acquisition Company N.V. (PEHAC), a special purpose acquisition company (SPAC) that invests in European hotel companies, was successfully listed today on the Amsterdam market of NYSE Euronext.

The company raised a total of €115 million in new capital from the sale of 14.375 million shares and warrants at an introductory price of €7.25 per share and €0.75 per warrant. After opening of trade the first market price of PEHAC was €7.60 per share and €0.80 per warrant. Based on a the total number of 17.375 million shares and warrants, total market capitalization of the company at opening price is €146 million.

PEHAC is the first SPAC floating on the European continent and the latest of nine listings on the Amsterdam market this year, which involved placing €2.6 billion in fresh capital. Over €19 billion in market capitalisation has been added to the Amsterdam market so far this year, more than the total additional market capitalisation for the whole of 2006. Since the beginning of the year, a total of €5.6 billion in capital has been placed on the combined Euronext markets, resulting in over €54.6 billion in additional market capitalisation.

“We are delighted to welcome Pan-European Hotel Acquisition Company N.V. to our market. Amsterdam has enjoyed a great deal of success in the area of innovative listings, such as private equity funds, hedge funds and now special purpose acquisition companies, and has become the most popular gateway to the euro market for this fast-growing segment,” said Joost van der Does de Willebois, chairman of the Amsterdam market and member of the Management Committee of NYSE Euronext.

View original article.

SPAC up the truck?

“Crave Huge Risk, this investment may be for you” says a 2005 article by the New York Times. “A fools game” states another recent editorial regarding highly unknown and underappreciated investment vehicles known as SPAC’s, or Special Purpose Acquisition Corporations.

So little is known about these investments that many top tier hedge fund managers shy away from them due to their blatant uncertainty. Brokers and advisors regard them as merely tools of speculation, with one recent news article quoting a prominent broker stating “if this is your thing, just go to Vegas, your odds are the same and you’ll eat for free”.

Read more >>> Thoughts on Investing blog

Don't Get Whacked By India SPACs

MUMBAI - Global investors may want in on the India story, but market professionals here are voicing concerns over a rising number of speculators in the U.S. and U.K. who are raising funds through specialized investment vehicles without strong business plans for how to make use of the money in India.

Special-purpose acquisition companies, or SPACs, are essentially blank-check entities with no operations — they go public with the promise to investors that they will use the money they've raised to acquire or merge with another company.

There are an estimated 10 India-dedicated SPACs listed mainly in the U.S. and U.K. that have raised funds ranging between $350 million and $500 million to acquire companies here.

“Is India going to get whacked by SPACs? Piggybacking on the red-hot M&A wave that India is currently riding on, I believe it’s only a matter of time,” HDFC Bank Chairman Deepak Parekh said at a conference this week. M&A volume so far in 2007 has already hit an annual record of $50 billion; Parekh believes the total will surpass $100 billion by the end of the year.

Read More >>> Forbes.com article

Triplecrown files for SPAC, Chairman's past raises questions

Triplecrown Acquisition Corp. has filed to come public as a 'blank check' or SPAC (Special Purpose Acquisition Company). Triplecrown is a newly organized blank check company formed for the purpose of acquiring one or more operating businesses in the financial services industry.

The company is selling 40,000,000 units in a deal valued at $400 million, or $10.00 per unit. Each unit will represent one share and one warrant, and underwriters have been allocated a 6 million shares over-allotment. Citigroup is listed as the lead underwriter, with Jefferies, Ladenburg Thalman, and Broadband Capital Management involved in the deal.

Read more >>> 24/7 Wall St.

HDFC head cautions against acquisition firms

HDFC Chairman Deepakh Parekh today cautioned investors against the increasing trend of setting up Special Purpose Acquisition Companies (SPACs) for raising funds on the AIM.

SPACs are essentially firms that raise money through public offerings with an objective to acquire small- and medium-sized firms focusing on a particular sector or country. The acquisitions are made within a specified timeframe or the funds are returned to the investors.

Parekh, also the chairman of the CII National Council for Infrastructure Development, was speaking at a seminar on "London Listing - Special Emphasis on AIM."

"Conventional investment wisdom or perhaps even a pea-sized brain would tell us that you do not hand over millions of dollars to a group of a publicly listed company that does nothing, has no firm business strategy and may never have any assets. Yet the impressive returns of 40 per cent is reason enough for investors to savour SPACs," he said.

He added that there were close to 10 India dedicated SPACs, that have raised funds ranging between $350 million to $500 million and were now on the prowl to acquire Indian companies. There was already an AIM-listed India dedicated SPAC, which recently made an acquisition for $110 million.

"Clearly, this is just the beginning of sophisticated investment vehicles, but investors must also realise that the India party with extraordinarily high returns cannot go on forever," he said.

"At the same time, we must caution against reaching a pump and dump kind of situation which can undo all the good investor sentiment that has so painstakingly been built up in India." Parekh also questioned the Securities and Exchanges Board of India's (Sebi) restrictive regulations.
Read more >>> Business Standard (India)

See also >>> SPACs making their way to India and SPACs on prowl to acquire Indian firms and SPAC attacks on firms rising

China SPAC seeks amendments, extension

Chardan North China Acquisition Corp. Sets Meeting and Record Dates for Special Meeting of Stockholders; Calls for Extension of Date to Complete Business Combination

Company Still Working Toward Completing Acquisition by August 2007

SAN DIEGO & BEIJING--(BUSINESS WIRE)--Chardan North China Acquisition Corp. (OTCBB: CNCA, CNCAU, CNCAW) ("Chardan North" or “the Company”), a SPAC® incorporated in March 2005 for the purpose of acquiring an operating entity in the PRC, announced today that its Board of Directors has set August 7, 2007 as the date for its Special Meeting of Stockholders to consider and approve amendments to its certificate of incorporation to:

i)  eliminate the provision that purports to prohibit amending its
    "business combination" provisions;

ii)  extend the date before which Chardan North must complete a
     business combination ("Extension Amendment"), to avoid being
     required to liquidate, beyond August 10, 2007 to November 10,
     2007; and

iii) allow holders of up to 20% of the shares issued in Chardan
     North's IPO who vote against the Extension Amendment and elect
     conversion to convert their shares into cash held in the IPO
     trust account.

Read more >>> View CNCA 07-10-07 PR

Motley Fool talking SPACs: The Incredible Bulk

By Toby Shute - July 9, 2007

Speaking of margin of safety, I've stolen my dry bulk shipper idea from the guy who wrote the book on the subject. In case you don't have the $1,450 to shell out on a used copy of Seth Klarman's Margin of Safety on Amazon.com (Nasdaq: AMZN), there are extensive notes presented here. Klarman runs a hedge fund called the Baupost Group, and I enjoy checking out his top holdings from time to time. The guy has turned in some world-beating results, even while reportedly maintaining massive cash balances, so his positions are always worth a peek.

I was initially surprised to discover Star Maritime Acquisition (AMEX: SEA) among the firm's largest reported holdings -- first, because I'd never heard of it, and second, because once I looked it up, I discovered that it's a blank-check company. Fellow Fool Emil Lee explained both the how's and why's of investing in these vehicles, also known as SPACs (special purpose acquisition company). I think the key phrase from those articles is "heads I win, tails I get my money back with interest." A SPAC either finds an acquisition target by a set date, or it liquidates and returns the capital to shareholders.

Read more >>> TMF "The Incredible Bulk"

See also >>> TMF Return of the SPAC: Part 1 and TMF Return of the SPAC: Part 2

Paramount announces updated Chem Rx investor presentation

July 02, 2007: 08:55 AM EST

NEW YORK, July 2 /PRNewswire-FirstCall/ -- Paramount Acquisition Corp., a special purpose acquisition corporation ("SPAC"), announced today the release of an updated Chem Rx corporate presentation. The presentation includes a corporate overview and pro forma estimates and valuation pertaining to its proposed acquisition of Chem Rx, a major privately-owned long-term care pharmacy based in Long Beach, New York.

The presentation is available in the Investor Relations section of Chem Rx's website at http://www.chemrx.net. The presentation may also be found as an exhibit to Paramount Acquisition Corp.'s Current Report on Form 8-K, which is being filed today, on the SEC's website at http://www.sec.gov.

Read more >>> Paramount press release