Carousell, a Singapore-based online classifieds marketplace operator, has recently ended talks to go public through a merger with blank-check company L Catterton Asia Acquisition Corp amid market volatility, according to people familiar with the matter.
The special purpose acquisition company, which has been conducting due diligence on Carousell over the past few months, has not been able to reach a merger agreement with the Southeast Asian business, the people said, asking not to be identified because the matter is private.
The stock market rout has made it difficult to arrange a private investment in public equity, or PIPE, the people said, where typically other investors chip in funds alongside those contributed by the SPAC itself to the merged entity. Macroeconomic uncertainty and valuation concerns are also among the factors weighing on a potential deal, they added.
