By Pietro Lombardi
Shares in Codere SA are trading sharply higher on Tuesday after the Spanish gaming company said it will sell a minority stake in its online business through a deal involving a merger with a special-purpose acquisition company, or SPAC.
The company said it will keep a stake of 54% to 73% in its online business, depending on the outcome of the deal. The company emerging from the SPAC deal will be listed on the Nasdaq.
Codere shares trade 26% higher in European morning trade.
The deal, which is expected to be completed by the final quarter of the year, values the merged entity at roughly $350 million.
The transaction should lead to proceeds of at least $77 million, which include $67 million already committed by four institutional investors.
The SPAC involved in the deal is DD3 Acquisition Corp. II. SPACs are often called blank-check companies and are shell companies, which raise money to buy private companies…