(Bloomberg) -- A Singaporean blank-check 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 Ltd., according to people with knowledge of the matter, as it races to meet a January deadline.
A deal between Pegasus Asia and the technology firm may value the combined entity at more than $600 million, the people said, asking not to be identified as the process is private. The potential merger could include a S$100 million to S$150 million ($73 million to $110 million) private investment in public equity, or PIPE, anchored by global institutions, the people said.
Pegasus, which faces a two-year deadline to complete an acquisition under the rules for special purpose acquisition companies, could seek the Singapore exchange’s approval to combine with Kacific as soon as this week, the people 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 people said. A spokesperson for Tikehau declined to comment, while representatives for Pegasus and Kacific didn’t immediately respond to requests for comment.
Pegasus Asia held its initial public offering 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 as well as former UniCredit SpA boss Jean Pierre Mustier and incoming Standard Chartered Plc Group Chief Financial Officer Diego De Giorgi.
Pegasus Acquisition Co. Europe BV, an Amsterdam-listed SPAC backed by the same group, announced in April it would dissolve after failing to meet the deadline to find an acquisition target.
A deal would be Singapore’s second SPAC merger, after Vertex Technology Acquisition Corp. announced Oct. 2 it will combine with Taiwanese streaming platform 17Live Inc. Under the local stock exchange regulations, SPACs have 24 months after their IPO to find a target, and may be able to extend 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 Southeast Asia, the website shows. It launched its first satellite, Kacific1, into space in 2019 from Cape Canaveral, Florida on a SpaceX rocket.
--With assistance from Olivia Poh.
(Updates with satellite launch in last paragraph.)
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