A SPAC merger that was set to bring a UK steel distributor public has been canceled after allegations of abusive behavior by purported shareholders in the blank check firm, Bloomberg reports.
The SPAC tie up that would've resulted in Megasteel Ltd. going public later this year was called off after groups claiming to be investors in the acquirer, More Acquisitions PLC, approached the target's management and owners using “abusive and threatening behaviour.”
The “unwarranted tirade of abuse and vitriol directly addressed” at Megasteel's owners and board led the company to withdraw its merger agreement.
The SPAC at deal announcement last year said Megasteel is valued at between GBP49.5 million to GBP63 million on completion of the acquisition. Consideration will involve the issue of between 2.2 billion to 2.8 billion new shares, at a price of 2.25 pence per share.
Megasteel is a distributor of high-quality steel for the prestressing and post-tensioning of concretes in the UK. Prestressed concrete is a critical building product used in the UK construction market. Read more.