Continue reading this on our app for a better experience

Open in App
Home News SPACs

Pegasus Asia to dissolve its spac. Will Novo Tellus follow suit? (update)

Khairani Afifi Noordin
Khairani Afifi Noordin • 2 min read
Pegasus Asia to dissolve its spac. Will Novo Tellus follow suit? (update)
Should the spacs be dissolved, investors’ funds will be returned. Photo: Albert Chua/The Edge Singapore
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Singapore Exchange (SGX)-listed spac firms Pegasus Asia and Novo Tellus Alpha Acquisition (NTAA) are not looking to merge with any target companies and are instead seeking to dissolve the blank-cheque companies, according to sources familiar with the matter.

This is on the back of lower-than-expected numbers owing to unfavourable market conditions, The Edge Singapore understands. Pegasus’ announcement is expected to be made by Dec 22 while NTAA’s is set to be released next week. The deadline for SGX-listed despac mergers is January 2024.

Should the spacs be dissolved, investors’ funds will be returned. The Edge Singapore has reached out to both Pegasus and NTAA to seek clarification. 

In September, The Edge Singapore reported that Pegasus was targeting Singapore-based Kacific Satellites.

Founded by Christian Patourax in 2013, Kacific operates wholesale broadband satellite services, serving telecom operators, ISPs and governments. It boasts experienced global telecom and infrastructure investors. 

Kacific launched its first Ka-band high throughput satellite, Kacific-1, in 2019 to stream high-speed, low-cost and ultra-reliable broadband to rural and suburban areas of the Pacific and Southeast Asia. One of the company’s longtime partners is ST Engineering iDirect, the satellite innovation arm of SGX-listed ST Engineering, which provides Kacific with ground infrastructure.

See also: Trump Media lost US$58 million on US$4 million in sales last year

Meanwhile, in a response to The Edge Singapore's report via a filing dated Dec 20, NTAA executive chairman and CEO Loke Wai San says the company has not identified a conclusive target and will make the relevant disclosures at the appropriate time.

Under SGX's rules, the despacs are to take place within two years, although an extension of a year can be given, subject to approvals. As NTAA commenced trading on Jan 27 2022, it is likely that the spac would need to apply for the aforementioned extension.

The only SGX-listed spac that has successfully completed a business combination is Vertex Technology Acquisition Corp (VTAC), having merged with live-streaming platform 17LIVE following an EGM on Dec 1. Notably, institutional investors such as Fullerton Fund Management and NTUC Income have fully redeemed their shares.

See also: Novo Tellus to redeem Class A shares at $5.184 apiece

On the day of the EGM, VTAC announced that 62.53% of the company's issued share capital have been redeemed as at Nov 29.

Shares in 17LIVE closed at $1.56 on Dec 19, almost 70% lower than VTAC’s IPO price of $5. 

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.