A SINGAPORE blank-cheque company backed by asset manager Tikehau Capital and a group of prominent European financiers is nearing an agreement on a merger with satellite Internet provider Kacific Broadband Satellites as it races to meet a January deadline, according to sources with knowledge of the matter,

A deal between Pegasus Asia and the technology firm may value the combined entity at more than US$600 million, the sources said, asking not to be identified as the process is private. The potential merger could include a S$100 million to S$150 million private investment in public equity, or Pipe, anchored by global institutions, the sources said.

Pegasus, which faces a two-year deadline to complete an acquisition under the rules for special purpose acquisition companies (Spacs), could seek the Singapore Exchange’s approval to combine with Kacific as soon as this week, the sources said. The two firms have been in merger talks since at least 2022, Bloomberg News has reported.

While negotiations are advanced, they could still be delayed or fall apart, the sources said. A spokesperson for Tikehau declined to comment, while representatives for Pegasus and Kacific did not immediately respond to requests for comment.

Pegasus Asia held its initial public offering (IPO) in January 2022 and is the first Singapore-listed Spac with international backers. In addition to Tikehau, its sponsors include billionaire Bernard Arnault’s holding company, former UniCredit boss Jean Pierre Mustier and incoming Standard Chartered group chief financial officer Diego De Giorgi.

Pegasus Acquisition Europe, an Amsterdam-listed Spac backed by the same group, announced in April that it would be dissolved after failing to meet the deadline to find an acquisition target.

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A deal would be Singapore’s second Spac merger, after Vertex Technology Acquisition announced on Oct 2 that it will combine with Taiwanese streaming platform 17Live. Under Singapore Exchange regulations, Spacs have 24 months after their IPO to find a target, and may be able to seek an extension by as much as 12 months, before they are liquidated.

Founded in 2013 by Christian Patouraux, Kacific aims to deliver affordable broadband Internet to remote and underserved regions, according to its website. The Singapore-headquartered company provides high-speed Internet access via satellite to governments and businesses across 25 countries in the Pacific and South-east Asia. BLOOMBERG