Lionsgate has moved one step nearer to spinning off its movie and TV studios enterprise in a Particular Objective Acquisition Firm (SPAC) to create a individually traded public firm.
Screaming Eagle Acquisition Corp., a SPAC — also known as a clean test firm — led by SPAC sponsor Eagle Fairness Companions and CEO Eli Baker in an SEC submitting on Tuesday stated the registration assertion for the proposed merger has been declared efficient by the U.S. Securities and Trade Fee, which ought to pave the way in which for the deal to shut and Lionsgate Studios to launch as a standalone firm in early Might by itemizing on NASDAQ underneath the ticker image LION.
The merger prospectus has been mailed to Screaming Eagle’s shareholders and public warrant holders, and extraordinary shareholders conferences have been known as for Might 7. “The events anticipate that the enterprise mixture will shut in early Might, topic to satisfaction of the situations to the closing of the enterprise mixture,” Screaming Eagle stated in an announcement.
Launching Lionsgate Studios as a standalone public firm goals to offer the Hollywood studio, led by CEO Jon Feltheimer, choices earlier than finishing a long-awaited separation of the movie and TV studios and Starz. The newly merged entity, Lionsgate Studios, as a publicly traded car, will be capable of elevate contemporary capital and merge with present companies.
The SPAC deal can be seen as one of the best ways to uncover hidden shareholder worth for the studio and Starz belongings after the Hollywood studio thought of strategic alternate options. The largest asset for Lionsgate Studios will arguably be its huge library of films and tv franchises.
The SPAC transaction has been structured with the father or mother firm finally retaining 87.3 p.c of the shares in Lionsgate Studios, whereas Screaming Eagle Acquisition Corp. will management the remaining 12.7 p.c fairness stake.