Chinese steel trading site to go public via merger with SPAC, first in Hong Kong

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

Chinese steel trading website ZG Group has agreed a deal to go public in Hong Kong via a merger with a special purpose acquisition company backed by China Merchants Bank’s overseas asset management arm.

The company, formerly known as Zhaogang.com, will combine with Hong Kong-listed Aquila Acquisition, according to an exchange filing. The deal values ZG Group at about HK$10 billion.

The agreement comes with a private investment in public equity, or PIPE, with 10 investors, including a subsidiary of commodities trading giant Trafigura Group, according to the filing. The proceeds from the PIPE will be HK$605 million.

A successful merger would see the first so-called de-SPAC by a Hong Kong-listed blank-check company, since the city’s stock exchange announced SPAC rules in 2021.