Tuesday, 19 September 2023

Middle East’s First SPAC ADC to Merge With United Printing & Publishing - Bloomberg

Middle East’s First SPAC ADC to Merge With United Printing & Publishing - Bloomberg

The first blank-check company to list in the Middle East inked a deal with Abu Dhabi-based United Printing & Publishing, a company that prints identification cards.

The transaction with ADC Acquisition Corp. will provide United Printing & Publishing with 1.1 billion dirhams ($300 million) of new cash from the blank-check firm as well as a 734 million-dirham private investment in public equity that the company plans to raise. The deal implies an enterprise value of 600 million dirham for the printing company.

Backed by Abu Dhabi’s wealth fund ADQ and Chimera Investments, ADC became the first special purpose acquisition company to list in the Middle East in May 2022. The move came after abysmal returns and tightening regulatory oversight caused SPAC issuance to crater in the US last year.

“As the region’s first SPAC merger process, this transaction marks a notable achievement for ADC,” Seif Fikry, chief executive officer of ADC, said in a statement. “We are confident that UPP represents an attractive platform, with strong and stable revenue.”

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