Singapore SPAC Novo Tellus Alpha Acquisition still looking for buyout targets

(Reuters) – Novo Tellus Alpha Acquisition, a Singapore-based special purpose acquisition company, said on Wednesday it was still pursuing buyout targets, denying media reports that it was seeking to pull the plug on its operations.

“The activities to identify an optimal business combination target are ongoing”, but it has not entered any written, binding acquisition agreement, the company said in a statement.

Singapore-listed SPACs have two years to acquire or merge with a company, with the option for a one-year extension, subject to certain conditions.

Backed by private equity firm Novo Tellus, the shell company’s deadline to acquire or merge with another business is January 2024.

Novo Tellus also said on Wednesday it had raised $510 million for its third private equity fund called Novo Tellus PE Fund 3, surpassing its fundraising target by 36%.

Earlier in the day, SPAC Pegasus Asia, backed by alternative asset manager Tikehau Capital, said it would not make an acquisition by a Jan. 20 deadline and would close down.

(Reporting by Himanshi Akhand and Ayushman Ojha in Bengaluru; Editing by Shailesh Kuber and Devika Syamnath)