Board governance of SPACs
Effective governance requires independent directors to understand the value creation process, the risks involved, and how these risks can be managed through diligent board oversight.
Add BT as a preferred source
SPECIAL purpose acquisition companies (SPACs) have been in the limelight. SPACs - basically, listed "blank-cheque" companies that merge with target firms seeking access to equity markets without going through an initial public offering (IPO) - are gaining traction in Asian markets. Examples of potential targets include Grab Holdings, Carousell, and PropertyGuru. The Singapore Exchange also launched a consultation exercise on SPAC listings earlier this year and is expected to release the results of this public consultation soon.
A SPAC is different from other forms of listed entities and deserves special attention by its independent directors. To appreciate how this impacts board governance, it is important to understand the value creation process for two key stakeholders: the founders and investors of a SPAC.
Value creation
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
