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SPACs in Shipping

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  • Shachmurove, Yochanan
  • Vulanovic, Milos

Abstract

In this study we examine how Specified Purpose Acquisition Companies (SPACs) were used as a financing tool for companies in the shipping industry in period 2004-2011. We confirm that SPACs focused on acquisitions in the shipping industry have similar characteristics as the population of SPACs that entered U.S financial markets in the same period. When their characteristics differ, SPACs focused on shipping are larger in size than the rest of SPACs, have larger number of underwriters in syndicate, and have a higher rate of merger success. Also, the founders of shipping SPACs tend to be, on average, younger than their counterparts. Additionally, we confirm that shipping companies merge into SPACs for the benefits of acquiring public listing and receiving SPAC’s cash. The fact that some SPACs in our sample went private soon after the merger makes us believe that financing motives were more important than public listing motives

Suggested Citation

  • Shachmurove, Yochanan & Vulanovic, Milos, 2013. "SPACs in Shipping," MPRA Paper 52520, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52520
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    References listed on IDEAS

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    1. Schultz, Paul, 1993. "Unit initial public offerings *1: A form of staged financing," Journal of Financial Economics, Elsevier, vol. 34(2), pages 199-229, October.
    2. Shachmurove, Yochanan & Vulanovic, Milos, 2015. "Specified purpose acquisition companies in shipping," Global Finance Journal, Elsevier, vol. 26(C), pages 64-79.
    3. Lakicevic, Milan & Vulanovic, Milos, 2012. "A Story on SPACs," EconStor Preprints 65843, ZBW - Leibniz Information Centre for Economics.
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    6. Robert Berger, 2008. "SPACs: An Alternative Wav to Access the Public Markets," Journal of Applied Corporate Finance, Morgan Stanley, vol. 20(3), pages 68-75, June.
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    More about this item

    Keywords

    SPACs; Specified Purpose Acquisition Companies; Blank Check; IPO; M&A; Private Equity; Shipping Finance; Maritime Finance;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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