The latter deal shows that Spacs can succeed if investors are sufficiently educated. The former demonstrates how cash shells will develop
Horizon and Helikos are two types of European listed acquisition vehicles launched this year with the same aim – the raising of capital in the public markets by an experienced management team to acquire one or more target companies. Hugh Osmond’s Horizon was a London-listed cash shell and Wendel’s Helikos was a special purpose acquisition company, or Spac. This article compares and contrasts the two.
Although Euro-Spacs and cash shell companies have the same goal and many similarities, there are material differences. Whilst the simplicity of the cash shell structure is appealing, it does not provide the same level of control for shareholders over the eventual acquisition, or protection over proceeds. The challenge for the Spac market in Europe remains investor familiarity. If enough succeed...