Shareholders back Lakestar SPAC merger with Germany's HomeToGo (updated)

HomeToGo SE

13/09/2021 13:40

(Adds context)
    By Douglas Busvine
    BERLIN, Sept 13 (Reuters) - Shareholders on Monday
unanimously backed a merger between listed shell company
Lakestar SPAC I  LRS1.DE  and German travel tech startup
HomeToGo, although proceeds from the deal were reduced by
investor redemptions.
    As a result of the transaction, Berlin-based HomeToGo will
receive a 250 million euro ($295 million) cash injection from
the special-purpose acquisition company, or SPAC, promoted by
venture capitalist Klaus Hommels.
    Hommels launched Germany's first SPAC https://www.reuters.com/article/us-lakestar-spac-idUSKBN2AH1UJ
 on the Frankfurt Stock Exchange in February, offering an
alternative route to market for local startups to listing in the
United States, where such blank-cheque companies are well
established.  urn:newsml:reuters.com:*:nL8N2KN52O
    The Lakestar SPAC raised 275 million euros via the listing
in February, and when the merger deal was announced https://www.reuters.com/article/us-hometogo-m-a-lakestar-idUSKBN2EK25H
 in July investors agreed to put in a further 75 million euros
through a private placement.  urn:newsml:reuters.com:*:nL8N2OQ58K
    Investors who back a SPAC have the opportunity to redeem
their bets at the issue price before a merger deal is finalised.
In Lakestar's case, 36.6% of shares were returned, the SPAC said
in a statement.
    Shares in Lakestar SPAC I never clearly broke through their
10 euro offer price, indicating a possible lack of enthusiasm
among investors at its choice of merger target. They were marked
down 1.4% on Monday at 9.69 euros.
    Still, Lakestar said the redemption rate was "very low"
compared to recent SPAC deals in the United States, where market
euphoria around the mechanism has faded of late.
    "The resounding vote at today's Extraordinary General
Meeting and the very low redemption rate highlight the
attractiveness of the asset we are combining with," said Stefan
Winners, CEO of Lakestar SPAC I.
    The merger deal, which puts an equity value on HomeToGo of
around 1.2 billion euros, is expected to close by the end of the
month. The listed entity, to be called HomeToGo SE, is expected
to trade in Frankfurt under the 'HTG' ticker.
   ($1 = 0.8485 euros)

 (Reporting by Douglas Busvine  Editing by Maria Sheahan and
Mark Potter)
 ((douglas.busvine@tr.com; +49 30 220 133 562;))