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BERLIN/LONDON (Reuters) – German venture capitalist Klaus Hommels launched a so-called blank cheque company in Frankfurt on Wednesday through his firm Lakestar, offering a route to the stock market for tech startups that does not entail crossing the Atlantic.
The early investor in Spotify (NYSE:SPOT) is seeking to raise up to 275 million euros ($331 million) for a Special Purpose Acquisition Company, or SPAC, that would then take over a company with an equity value of between 750 million and 4 billion euros.
A SPAC is a shell company that raises money via a stock market listing, it then merges with a privately held company that becomes publicly traded as a result.
Hommels, 54, is the latest to embrace a trend that began in the United States and has spread to Europe, with Former UniCredit boss Jean-Pierre Mustier teaming up with French tycoon Bernard Arnault to launch a SPAC in Amsterdam.
The founders of Berlin e-commerce pioneer Rocket Internet and meal kit company Hellofresh also plan SPACs. Unlike Lakestar’s Hommels, however, they plan to do so in the United States.
The promoters of Lakestar SPAC 1 SE are seeking backing from institutions prior to listing on the Frankfurt Stock Exchange and would seek to take over a target within two years.
Books are expected to close on the private placement on Thursday, Lakestar SPAC 1 said in a statement.
($1 = 0.8308 euros)
