SPAC Wrap: #ESG and SPACs = Very 2020
December 4, 2020

Boardroom Alpha provides in-depth analytics and tracking of all public company executives and officers. Below is a rundown of select CEO moves made in November. Get a demo today to see how you can receive real-time alerts and in-depth analytics.

A rundown of notable SPAC happenings this week:

Star Peak & Stem

  • Star Peak (STPK) announced Stem, Inc. as target: “Founded in 2009, Stem is an energy storage leader that offers customers a complete solution of integrated battery storage systems, network integration and battery optimization”
  • Mike Morgan to stay on as director at STPK — currently lead director of Kinder Morgan ($KMI). Has been there since founding and completed 23 acquisitions worth over $5 billion. (according to bio)
  • Expects to close in Q1 2021. Will change symbol from STPK to STEM trade on NYSE estimated equity value of $1.35b
  • **ALL** Stem shareholders rolling **100%** of their equity holdings into STEM This is a BIG signal.
  • And, of course STPK is working up ESG interest as STEM “offers investors a unique ESG opportunity to invest in a pure play clean energy company helping to revolutionize the electric grid.”

View & CF Finance Acquisition II

  • CFII announced View, a smart-glass maker, as its target for an acquisition. The deal includes a $300mm PIPE and values Stem at $1.6b
  • CFII is the second SPAC from the Cantor Fitzgerald team of Howard Lutnick, Anshu Jain, and Paul Pion
  • Of course, ESG related, the deal is green-certified with a Second Party Opinion performed by Sustainalytics
  • The first Cantor SPAC bought asset manager GCM Grosvenor earlier this year, shares are down 3% since it closed
  • There is a third Cantor SPAC, the aptly named CF Finance Acquisition III, which has yet to find a target (raised $200mm)

Seven Oaks Files for a $200mm ESG Focused SPAC

Acquisition criteria for Seven Oaks (Source: S-1)
  • The buzzwordy SPAC of the week comes from ex IES Holdings CEO Gary Matthews
  • Seven Oaks Acquisition will “focus on opportunities aiming to make a positive social impact with a specific emphasis on good Environmental, Social and Governance (“ESG”) practices”
  • His short stint as CEO of IES was enormously successful, overseeing a 17% annualized TSR for his efforts
  • While this is his first SPAC, he has an extensive Private Equity history, including 12 years as an MD at Morgan Stanley Capital Partners

Tom Farley goes for Round 2 with Far Peak Acquisition

  • Far Peak will target a company in the “financial technology, technology or financial services industries”
  • His first SPAC, Far Point Acquisition, merged with Global Blue in August and is up +24% since then

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