Singapore’s Novo Tellus Alpha Acquisition to miss buyout deadline

(Reuters) – Singapore’s Novo Tellus Alpha Acquisition said on Thursday it would not be able to conclude a mandatory business combination ahead of a Jan. 26 deadline.

“After careful consideration and thorough evaluation of potential targets, and taking into consideration current market conditions, the company’s leadership and board of directors have determined that it will not conclude a business combination ahead of the deadline of 26 January 2024,” the special purpose acquisition company (SPAC) 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.

The announcement from the SPAC, backed by private equity firm Novo Tellus, comes just weeks after the company said it was still in the process of finding a deal and pursuing buy-out targets, denying media reports that it was seeking to pull the plug on its operations.

In December last year, Pegasus Asia – another Singapore-based SPAC backed by alternative asset manager Tikehau Capital – disclosed its decision to wind down as it was unable to acquire buy-out target by a given deadline.

(Reporting by Roushni Nair in Bengaluru; Editing by Rashmi Aich)