1. Startups

Parent Kredivo Cancel Merger with SPAC Company, Postpone Go-Public Plans

In exchange, Victory Park Capital will lead the funding Kredivo with a value of $145 million

FinAccel's move to immediately take the floor on the NASDAQ stock exchange was forced to be delayed. Parent company Kredivo announced the cancellation of the merger with a blank check company (SPAC), namely VPC Impact Acquisition Holdings II (VPCB). In exchange, Victory Park Capital will provide funding to Kredivo with a lead of $ 145 million or about 2 trillion Rupiah.

For information, VPCB is an affiliate of Victory Park Capital (VPC), a global investment firm that has provided financial services several times credit facility to Kredivo.

The statement on the cancellation of the merger was delivered yesterday, Monday (14/3) by both parties citing the unfavorable market situation and the pending merger process. According to VPCB Co-CEO and Partner at VPC Gordon Watson, these two factors prevented FinAccel and VPC from closing transactions according to the terms of the agreed agreement.

"We strive to carry out this process so as to fulfill the interests of our shareholders as our top priority. However, the market situation and pending processes beyond our control have affected the transaction schedule of both parties in completing this business combination," Watson said as quoted by Antara. Deal Street Asia.

Meanwhile, FinAccel Co-founder and CEO Akshay Garg added, his party is still working to strengthen close relationships with VPCs and the best investors through a new funding round despite the plan to go public should be postponed for now.

Furthermore, both FinAccel and VPCB are considering other alternative options to realize the planned merger with SPAC vehicles. When the VPC is liquidated, Kredivo will publish penny warrants so that it can acquire shares equivalent to 3,5% of equity Kredivo completely diluted.

FinAccel expansion plan

FinAccel first announced IPO plan in August 2021. Currently, the company says it has entered the stage of a definitive agreement to merge its business after VPCB completed its IPO in March 2021. Both parties have submitted documents to the United States Securities and Exchange Commission (SEC)

Since the beginning,  The company is eyeing an IPO on the United States (US) stock exchange so that it has the opportunity to get much greater liquidity. Moreover, the US stock exchange has been identical as a "home" for many global technology companies. FinAccel has also opened the option for dual listing, aka being listed on the Indonesia Stock Exchange (IDX), although there is no further certainty.

The merger with SPAC is estimated to bring FinAccel's valuation to around $2,5 billion, assuming no redemption. Through this IPO, the company is targeting fresh funds of $430 million or more than IDR 6,1 trillion in cash on the combined company's balance sheet. 

More Coverage:

At that time, Garg revealed that the funds would be used to strengthen FinAccel's position in the Southeast Asia region, especially through Kredivo which currently leads the BNPL (Buy Now Pay Later) market in Indonesia.

FinAccel is also preparing its steps to enter digital banking this year with officially become controller Bank Bisnis Internasional Tbk (IDX: BBSI). Previously, FinAccel annexed 24% of Bank Bisnis's shares in May 2021. Then, the company again increased its ownership portion to 40% in October 2021. Thus, FinAccel now controls 75% of Bank Bisnis's shares.

Application Information Will Show Up Here
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again

Sign up for our
newsletter

Subscribe Newsletter
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again