Convenience chain GPM merges with blank check company to go public in $1.4 bln deal

biote

09/09/2020 13:36

Sept 9 (Reuters) - Haymaker Acquisition Corp II  HYAC.O , a
special purpose acquisition company (SPAC), said on Wednesday it
will merge with GPM Investments in a deal worth $1.4 billion
that will take the U.S. convenience chain operator public.
    Haymaker, which went floated its shares in June 2019, will
merge with GPM Investments and its controlling shareholder Arko
Holdings Ltd  ARKO.TA , the companies said. (https://reut.rs/2R9WdRW)
    The publicly traded firm will be called Arko Corp and list
on Nasdaq under the symbol "ARKO". The combined entity will be
led by GPM's current management team.
    Shares of Arko, whose primary asset is a controlling stake
in GPM, will be de-listed from the Tel Aviv stock exchange, as
part of the deal.
    GPM operates in three segments, retail, wholesale and GPM
Petroleum, and is present in 23 U.S. states.
    A SPAC, or a blank check company, is a shell company that
uses IPO proceeds and debt to acquire another company, typically
within two years. Investors are not notified in advance what the
SPAC will buy.
    SPACS, which were once relegated to the backwaters of
capital markets, have emerged this year as a major driver of
IPOs, led by high-profile deals for the likes of space tourism
company Virgin Galactic Holdings Inc and fantasy sports and
gambling company DraftKings Inc.
    Healthcare services provider MultiPlan and electric-car
maker Fisker were other notable private firms to go public this
year by merging with blank check companies.

 (Reporting by Abhishek Manikandan in Bengaluru; Editing by
Shounak Dasgupta)
 ((Abhishek.manikandan@thomsonreuters.com; within the U.S. +1
646 223 8780, outside the U.S. +91 80 6182 2626))