Series 79 practice questioneasySPAC Transactions
What is a de-SPAC transaction?
- AThe business combination in which a SPAC merges with a private operating company✓ Correct answer
- BA tender offer for treasury shares
- CA spin-off of a regulated subsidiary
- DA debt exchange under Rule 144A
Explanation
Why A — The business combination in which a SPAC merges with a private operating company
The business combination in which a SPAC merges with a private operating company The de-SPAC is the transaction that takes the private target public through the SPAC’s listed shell. It is the central value-creating step in the SPAC lifecycle.
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