A SPAC will buy back its own SPAC and pay a staggering premium

It’s the latest twist in the world of blank-check mergers: A company plans to go public with a SPAC and use it to buy back an affiliate that it took public using another SPAC.

This circular scenario revolves around a drugmaker called Roivant Sciences Ltd., which wants to merge with a special-purpose acquisition company and then take over a SPAC that acquired Immunovant Inc. from Roivant less than two years ago.

What’s more, Roivant says it knows something that everyone else doesn’t about its former unit, and it’s willing to pay a premium for the shares—perhaps as much as 70% by one estimate.

A SPAC-on-SPAC deal is

→ Continue reading at Crain's New York Business

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