Hong Kong's iconic Rosewood Hotel Group to file for SPAC listing

[HONG KONG] 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), 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, has enlisted Credit Suisse and JP Morgan are to lead the US 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 US$10 apiece.

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

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

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

REUTERS