A prominent City financier is trying to breathe new life into his listed acquisition vehicle by pledging to return a profit to shareholders while continuing the hunt for a merger target.
Sky News has learnt that Disruptive Capital Acquisition Co, which was listed on Amsterdam’s Euronext exchange by Edi Truell, will announce on Wednesday that it is launching a share buyback to return up to £128.5m to investors.
Under the terms of the offer, shareholders in the special purpose acquisition company (SPAC) will be able to tender up to 95% of their stock at a price equivalent to £10.25-a-share.
This would lock in a small profit for investors while allowing them to retain a minority of their shares, with Mr Truell gaining an additional 15 months to secure an acquisition.
DCAC had agreed a combination with Denmark’s Saxo Bank, a retail and derivatives broker, but announced earlier this month that the merger was being abandoned.
Hundreds of SPACs, predominantly listed in New York, have been forced to wind themselves up and return cash to shareholders after failing to agree deals within their allotted investment period.
Mr Truell’s plan would, if approved by DCAC shareholders, allow him time to source an alternative tie-up ahead of a new deadline of April 2024.
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The financier is a prominent City figure, having founded the Pension SuperFund and Pension Insurance Corporation, as well as heading the buyout firm Duke Street Capital.
He also advised Boris Johnson on pensions issues during the latter’s tenure as Mayor of London.
The return of capital from DCAC to its investors is likely to mean that any future merger would be significantly smaller than the £2bn valuation ascribed to Saxo Bank, according to one investor.
A DCAC spokesman declined to comment.
