May 14, 2021
Latham & Watkins advised Hedosophia
Group on the launch of Hedosophia European Growth, a blank cheque company that
successfully raised €400 million in a private placement for the purposes of
completing a business combination with a European technology company.
Hedosophia European Growth has begun trading on the Euronext Amsterdam.
Hedosophia has set out to provide a
best-in-class version of the US SPAC model to the European market, innovating
three key features in the SPAC concept: demonstrating strong alignment of
interest with public shareholders by subscribing for 2,000,000 units for an
aggregate purchase price of €20 million; covering the cost of the negative interest of up to 56 bps per annum on
the funds held in the Escrow Account; and ensuring strong sponsor alignment
through an ambitious promote structure at business combination and share price
hurdles being achieved over 10 years.
Hedosophia Group is a significant
investor in Europe’s leading technology companies, led by co-founder and Chief
Executive Office Ian Osborne.
The Latham team was led by London corporate
partners Chris Horton and Mike Turner, with associate Tom Channing. Advice on
US corporate matters was provided by partner Ryan Benedict and capital markets
lawyer Irene Pistotnik.