NEW YORK, June 2 — Business news publication Forbes announced Wednesday that it has pulled the plug on a merger transaction with a specially created investment company as fewer of such deals get completed.
Forbes said that its shareholders had terminated the transaction with Magnus Opus Acquisition Limited. The media company gave no reason for the shift but expressed confidence in its future.
“The Forbes brand is a sought-after and trusted brand with more than 100 years of equity that is synonymous with success and validation,” said Forbes Chief Executive Mike Federle, who pointed to double-digit revenue growth over the past year.
Forbes had announced the deal in August 2021, envisioning raising about US$600 million (RM2.6 billion) through the union with Magnum Opus, a special-purpose acquisition company (SPAC), Magnum Opus is a shell investment vehicle set up specifically to merge with an operating company that entered public markets in March 2021.
First established around 30 years ago, SPACs became a popular means of entering public markets in 2020 and 2021 amid low interest rates and surging equity markets.
But the shift in Federal Reserve to a tightening monetary policy has slowed the arrival of new public companies as the stock market as a whole has struggled in 2022.
Also, the Securities and Exchange Commission has moved to tighten rules, unveiling new disclosure requirements on SPACs and removing a feature that gave such companies additional protection from lawsuits, compared with companies that pursue conventional initial public offerings.
Shares of Magnum One, trading under the “OPA” ticker, were off 0.5 per cent at US$9.78 in early-afternoon trading. — AFP