Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Third Point-backed Far Point green lights $2.6 billion Global Blue deal

Published 08/24/2020, 03:20 PM
Updated 08/24/2020, 03:25 PM
© Reuters.
SPNT
-
GB
-

By Joshua Franklin

NEW YORK (Reuters) - Shareholders of Far Point (N:FPAC), the blank-check company backed by U.S. hedge fund Third Point (NYSE:TPRE) LLC, on Monday approved the proposed $2.6 billion acquisition of Swiss payments company Global Blue.

The vote caps months of wrangling between Third Point and the private equity owners of Global Blue, which Far Point had agreed to acquire in January but has since seen its business suffer due to the COVID-19 pandemic.

Holders of roughly 67.7% of Far Point shares voted in favor of the deal. Just over 50% support was required to green light the deal.

Investors with 48.7 million shares opted to redeem their stock to reclaim the initial $10 per share investment made at the time of the Far Point initial public offering in 2018.

Global Blue processes payments made by international travelers on luxury good purchases at airports and has been hit by the global decline in air travel.

The deal was thrown into doubt in May when Far Point changed its recommendation to shareholders and asked them to vote against the deal.

Then in July private equity firm Silver Lake, which owns Global Blue together with Partners Group Holding AG, offered a string of concessions to Far Point, including an offer not to issue a pre-transaction dividend of 154 million euros.

A compromise was announced on Aug. 16, with Silver Lake and Partners Group agreeing to take a smaller cash payout in the deal and instead receiving additional shares in the new Global Blue company.

Far Point is a special purpose acquisition company (SPAC) which raised $550 million through an initial public offering (IPO) in 2018 to merge with an unspecified technology company.

Upon closing of the deal, Global Blue will become a publicly listed company on the New York Stock Exchange.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.