With a 2nd Spac, Niel and Pigasse aim for responsible consumption

PARIS (Reuters) – Telecom entrepreneur Xavier Niel and banker Matthieu Pigasse announced on Sunday the launch of a second French “SPAC” aimed at making acquisitions in the production and distribution of consumer durables.

Baptized 2MX Organic, the SPAC, acronym for the English “Special Purpose Acquisition Company”, will be listed on the Paris Stock Exchange and aims to raise 250 million euros, with a possible extension up to 300 million euros.

Xavier Niel, founder of telecoms operator Iliad and Matthieu Pigasse, head of the French office of American bank CenterView, had already launched the first French SPAC in 2016 in the audiovisual sector, which has since become the Mediawan group.

This time, they joined forces with distributor Moez-Alexandre Zouari, founder of the Zouari group and reference shareholder of the Picard Surgelés group, who is called upon to take over the general management of the new company.

The three partners aim to build a leading European player in responsible and sustainable consumption by taking advantage of the surge in consumer demand for organic products.

The company, which will be listed on the professional compartment of Euronext, plans to make its first acquisition in 2021 for a significant amount that could reach between 1.5 and 2 billion euros, according to a source familiar with the transaction.

Once this first acquisition is completed, the three partners are planning further consolidations in Europe, on the model of the series of takeovers that have enabled Mediawan to become a leading player in audio production in Europe.

In the United States, the PSPCs have developed to the point of raising this year 58 billion dollars in stock market funds, but their use remains timid in Europe for the moment.

These companies make it possible to raise funds and obtain a “blank check” from investors to finance the acquisition of a target company which remains secret.

The operation, which should be the largest IPO since the start of the year, has received the green light from the Autorité des marchés financiers. It will begin this Monday and should end on December 7.

The founders, who each invested in the company, will hold a maximum of 29.6% of the capital and voting rights, we read in a press release.

Deutsche Bank acts as Global Coordinator and Associate Bookrunner and Société Générale as Associate Bookrunner. The founders were also advised by firms Racine and Winston & Strawn LLP.

(Gwénaëlle Barzic and Sarah White, edited by Caroline Pailliez)