Far Point Acquisition Corp. (FPAC), announced this morning that its board of directors “has unanimously determined that the previously announced business combination transaction with Global Blue Group AG (“Global Blue”) is not advisable or fair to, or in the best interest of, FPAC and its stockholders.” This came to no one’s surprise.
However, for a deal that held so much promise when it was first announced in early January of this year, it has had extraordinary bad luck. You would be hard pressed to find another company to be more impacted by a global pandemic and resulting recession that one predicated on international luxury travel.
Nonetheless, the board of directors is recommending AGAINST the transaction, however, the press release did not say they were terminating the transaction. Nor did FPAC say they were liquidating. I’m not a lawyer, but I suspect today’s press release is due to some sort of legal process.
Regardless, this deal is not happening. The real question is, will FPAC continue? And do they have a Plan B company up their sleeve? FPAC is running out of time since their deadline is June 14th, a little more than a month away. So clearly if they want to continue, they will need to extend, but they’ll need to get an extension proxy on file quickly in order to do that. Perhaps today’s announcement is the first step in that process, to be followed by a terminated deal and eventually an extension vote.
We should know more shortly….