ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is mulling to introduce the concept of a special purpose acquisition company (SPAC) to facilitate raising capital for acquisitions or mergers. The paid-up capital requirement for SPAC shall be Rs1 million and it shall raise at least Rs200 million through a public offering. Each merger or acquisition transaction shall be approved by the shareholders by way of special resolution. Upon merger, the merged entity shall be automatically listed and in case of acquisition, the SPAC shall list the acquired entity. Shareholder/(s) disapproving the merger or acquisition is entitled to a refund of their money out of the Escrow account as per the specified procedure.

Source: Pakistan Today April 28, 2021 11:37 UTC