from the October 2016 issue

Saban Capital Acquisition raises $235m in Nasdaq IPO

The blank check company is expected to invest much of the capital raised in Israeli high-tech companies. Three weeks after filing its preliminary prospectus with the US Securities and Exchange Commission (SEC), Saban Capital Acquisition has raised $235 million in its Nasdaq IPO. The blank check company is expected to invest much of the capital raised in Israeli companies.

The company issued 23,500,000 units at $10.00 per unit. The units are listed on NASDAQ under the SCACU ticker. Each unit consists of one Class A ordinary share and one-half of one warrant, each whole warrant enables holders to purchase one Class A ordinary share for $11.50. Deutsche Bank Securities Inc. and Goldman, Sachs & Co. served as underwriters for the offering and have a 45-day option to purchase up to an additional 1,500,000 units at the IPO price to cover over-allotments.

A blank check company is formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. Haim Saban, with a personal fortune of $3.6 billion according to "Forbes," is among the richest Israelis. Saban will serve as chairman of Saban Capital Acquisition while Saban Capital Group president Adam Chesnoff will serve as CEO. Among other things Chesnoff is chairman of Israeli mobile operator Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), which Saban controls.

The prospectus did not say that Saban Capital Acquisition would focus investments only on Israeli companies but hinted that they would form a major part of the new company's investments, saying in a statement, "We may invest in any company in any sector but would prefer to invest in companies that can benefit from our management's experience in investments in North America, Europe, Asia and Israel."

One way or another, it might well be worthwhile for Israeli high-tech entrepreneurs to call Saban or Chesnoff. $235 million is a lot of money to invest.

Reprinted from the Israel High-Tech & Investment Report October 2016

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