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Billionaire Richard Branson wants to raise $ 460 million for a new SPAC



Virgin Atlantic Airways and founder of the Virgin Group, Sir Richard Branson.

Craig Barritt

LONDON – Virgin founder Richard Branson wants to raise $ 460 million to set up a new special-purpose acquisition firm, or SPAC, which will be the latest in a series of wealthy investors to do so.

In an application to the Securities and Exchange Commission on Wednesday, the company said it intended to sell 46 million units for $ 1

0 a year. PCS.

Branson is appointed as the founder of the VG Acquisition, which is registered in the Cayman Islands. In the filing, the company said it plans to use the money raised through the first public tender to acquire a business that is already in operation.

SPACs, also known as blank check firms, are set up for the sole purpose of acquiring another company and listing it on the stock market, usually within a few years. More than 50 SPAC deals have taken place so far this year and have totaled over $ 20 billion, Goldman Sachs said in August. The investment bank said SPAC offers increased 145% over the same period a year ago.

SEC filing for VG Acquisition says the pandemic has created “a rare opportunity to invest in fundamentally strong target companies for attractive valuations.”

The company said it had not yet decided which business it would buy. Over the next two years, however, it will be looking for a company that operates in one of Virgin Group’s core areas such as travel, financial services, healthcare, technology, music, media, mobile and renewable energy.

Branson’s economy has been strained by the Covid-19 pandemic, and in April he suggested he might mortgage his home in the British Virgin Islands.

In an application in May, it was revealed that Branson was preparing to sell up to $ 504.5 million of its stake in Virgin Galactic.

“Virgin intends to use all proceeds to support its portfolio of global leisure, holiday and travel companies that have been affected by the unprecedented impact of Covid-19,” the company said in a press release.

There have been a number of high-profile SPACs in recent months, with billionaire Bill Ackman raising $ 4 billion for his in a first public tender in July.

Meanwhile, the acquisition company Apollo Global Management filed on Wednesday to raise $ 750 million through a blank check company called Apollo Strategic Growth.


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