16 Sep by Vitaliy Dadalyan

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Richard Branson Joins Blank-Check Frenzy with $400 Million Deal

Richard Branson Joins Blank-Check Frenzy with $400 Million Deal(Bloomberg) — 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.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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