Activist investor Starboard Value LP introduced its new affiliated blank-check company to the public markets Thursday, upsizing it to raising $360 million from an earlier target of $300 million.
Starboard offered 36 million units of new company, Starboard Value Acquisition Corp., at $10 each and they began trading on the Nasdaq market under the ticker symbol “SVACU.”
Starboard Value, known for its current activist position in Papa John’s International Inc. and former board takeover at Darden Restaurants Inc., said the new acquisition company will be focused on such industries as technology, healthcare, consumer, industrials and hospitality and entertainment.
Since first filing in mid-August, Starboard increased the amount it intended to raise for the special-purpose acquisition company, or SPAC, from $300 million to $360 million.
Special-purpose acquisition companies have recently grown in popularity as potential investment vehicles for restaurants.
On Aug. 21, FAST Acquisition Corp. was introduced on the New York Stock Exchange to raise $200 million for an eventual acquisition, possibly something in the quick-service space. FAST Acquisition is led by Doug Jacob, co-founder of &Pizza and co-CEO of the new blank-check SPAC, with Sandy Beall, the founder of the Ruby Tuesday brand.
In the Starboard Value Acquisition Corp. offering, each unit consists of one share of Class A common stock, one-sixth of one redeemable warrant and a contingent right to receive at least one-sixth of one redeemable warrant.
The company said each whole warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share.
After the securities comprising the units begin separate trading, the Class A common shares and the warrants are expected to be listed on the Nasdaq under the symbols “SVAC” and “SVACW,” respectively. The offering is expected to close on Sept. 14.
UBS Securities LLC, Stifel, Nicolaus & Co. Inc. and Cowen and Co. LLC are acting as joint book-running managers for the Starboard Value Acquisition offering. The company has granted the underwriters a 45-day option from the date of the final prospectus to purchase up to an additional 5.4 million units to cover over-allotments.
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