HK’s luxury Rosewood Hotel Group to file for SPAC listing

Photo by Micheile Henderson on Unsplash

Hong Kong’s luxury Rosewood Hotel Group, a unit of property developer New World Development, plans to file for a special purpose acquisition company (SPAC) listing, three people with knowledge of the matter said, adding to the recent rush for such deals.

Rosewood, run by Sonia Cheng, the granddaughter of family-run NWD founder Yu-tung Cheng, has enlisted Credit Suisse and JPMorgan to lead the U.S. SPAC listing, which targets the consumer sector, two of the people told Reuters.

Typically, a SPAC, a blank-cheque company that raises money through initial public offerings (IPOs) and merges with firms by enticing them with shorter listing timelines, will issue shares at $10 apiece.

One of the sources said that Rosewood‘s SPAC listing could aim to raise about $400 million.

The hotel group, which manages one of Hong Kong’s most prominent hotels located in the city’s Victoria Harbour in the tourist district of Tsim Sha Tsui, did not immediately respond to a query for comment. Credit Suisse and JPMorgan declined to comment.

The sources declined to be named as the information is confidential.

Rosewood‘s SPAC deal, if it materialises, will join a growing list of such transactions involving Asian issuers, who are lured by the SPAC IPO’s easier execution and lucrative returns once the SPACs merge with target companies.

Adrian Cheng, Sonia’s brother and chief executive of NWD, is separately in talks with banks about a SPAC listing, the people said. Bloomberg reported on Monday he’s aiming to raise $400 million.

The NWD family office did not immediately respond to a query for comment.

Property tycoon Li Ka-shing has also tapped advisers for a SPAC listing via his family office, other people said.

Li’s investment vehicle Horizons Ventures denied on Monday they are working on a SPAC. His foundation did not immediately reply to a request for comment.

Li’s son, Richard Li, set up two SPACs last year with U.S. venture capitalist Peter Thiel.

Funds raised via SPAC IPOs reached $60 billion by end-February, Dealogic data showed, already more than 70% of 2020’s annual deal value.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.