Home Business Codere Shares Rise 26% After Deal to Merge Online Business With SPAC

Codere Shares Rise 26% After Deal to Merge Online Business With SPAC

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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…

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