SPACs in Shipping

Shachmurove, Yochanan and Vulanovic, Milos (2013): SPACs in Shipping.

Abstract

In this study we examine how Specified Purpose Acquisition Companies (SPACs) were used as a financing tool for companies in the shipping industry in period 2004-2011. We confirm that SPACs focused on acquisitions in the shipping industry have similar characteristics as the population of SPACs that entered U.S financial markets in the same period. When their characteristics differ, SPACs focused on shipping are larger in size than the rest of SPACs, have larger number of underwriters in syndicate, and have a higher rate of merger success. Also, the founders of shipping SPACs tend to be, on average, younger than their counterparts. Additionally, we confirm that shipping companies merge into SPACs for the benefits of acquiring public listing and receiving SPAC’s cash. The fact that some SPACs in our sample went private soon after the merger makes us believe that financing motives were more important than public listing motives

• Item Type: MPRA Paper
• Language: English
• Keywords: SPACs, Specified Purpose Acquisition Companies, Blank Check, IPO, M&A, Private Equity, Shipping Finance, Maritime Finance
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies; G - Financial Economics > G2 - Financial Institutions and Services > G29 - Other; G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance

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