Financials Acquisition Corp SPAC seeks extra time for insurance deal (updated)

Financials Acquisition

21/06/2023 07:51

(Adds details on target value in first paragraph and additional
detail from paragraph five)
       LONDON, June 21 (Reuters) - Financials Acquisition
Corporation  FINSF.L  said on Wednesday it would seek
shareholder permission next month for more time to create a
billion pound ($1.28 billion) insurance undertaking.
    The special purpose acquisition company (SPAC), which was
floated in April 2022, said it has identified a potential target
company which could involve the company raising "substantial"
additional funds. 
    It would become a listed operating company deploying funds
into the Lloyds of London insurance market for reinsurance
purposes, the company said.
    The company said it will be seeking shareholder approval
next month to extend the deadline for completing a deal until
the end of December.
    "During the company's search process it became clear that
the global specialty insurance market and specifically risk
underwritten in Lloyd's market offered some of the most
attractive risk adjusted returns globally," the company said in
a statement.
         Lloyd's has created a new structure, London Bridge 2
PCC Ltd, which allows easier access for institutional capital
into the market, the company said.
  
        The company said it expects to have access to up to one
billion pounds of capacity into the 2024 underwriting year.
  
        Proposals are at an early stage and the company said it
remains confident that with the benefit of an extension it would
be able to complete this deal or another business combination,
the company added.
  
        "Upon completion of the proposed transaction, the
company's core strategy will be to focus on the Lloyd's market,
and understands that it will be one of the only main market
listed companies in London with such a core focus," it said.
  
        SPACS, once a frothy corner of the listings market, have
a set period to find a target, with some having to hand back
money to investors after being unable to meet their agreed
deadline.
        ($1 = 0.7831 pounds)
  

 (Reporting By Sinead Cruise and Huw Jones, editing by Dhara
Ranasinghe)
 ((sinead.cruise@thomsonreuters.com; 020 7513 5026; Reuters
Messaging: sinead.cruise.thomsonreuters.com@reuters.net))