European SPAC booking offers uncertain reward

HomeToGo SE

15/07/2021 11:10

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Neil Unmack
    LONDON, July 15 (Reuters Breakingviews) - Vacation rental
company HomeToGo will go public through a deal with blank cheque
vehicle Lakestar, the first in Germany. The 1.2 bln euro
valuation isn’t greedy, and the structure is more friendly than
some U.S. peers. Still, investors are making a bold punt in a
crowded sector.
    Full view will be published shortly.
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    CONTEXT NEWS
    - Lakestar SPAC I, a blank-cheque company listed in
Frankfurt, on July 14 said it would combine with HomeToGo in a
deal that values the online travel retailer at 861 million euros
including cash. 
    - The special purpose acquisition company will invest its
275 million euros of cash in HomeToGo, alongside another 75
million euros from third-party investors. HomeToGo’s existing
investors will roll over their shareholdings into the SPAC,
giving them a 69% stake. Lakestar shareholders will own 22% of
the combined group, while the new third-party investors and SPAC
founders will own 6% and 2%, respectively. 
    - HomeToGo connects holidaymakers with homeowners looking to
rent out their property and other online travel agents. It
generated 1.3 billion euros of revenue in 2020. 
    - Lakestar SPAC I shares were up 0.8% at 9.98 euros by 0945
GMT on July 15.
    - For previous columns by the author, Reuters customers can
click on  UNMACK/ 
     

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
HomeToGo seals merger with Lakestar SPAC in German stock market
first     urn:newsml:reuters.com:*:nL8N2OQ58K
Lakestar statement    https://lakestar-spac1.com/websites/lakestar-spac/English/1990/news-detail.html?newsID=2136091
BREAKINGVIEWS-Europe’s late SPAC boom turns kinder to investors 
   urn:newsml:reuters.com:*:nL8N2MY52W
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Peter Thal Larsen and Karen Kwok)
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