British billionaire Richard Branson is getting in on Wall Street’s hottest trend: creating a company just to buy another one.
The Virgin Group tycoon has founded a blank-check company called VG Acquisition Corp. that plans to raise up to $460 million through an initial public offering, securities records show.
The firm is a special purpose acquisition company, or SPAC, which raises money to buy or merge with another company that takes over its stock listing. It plans to sell 40 million shares on the New York Stock Exchange at up to $10 apiece, with an option to offer up to 6 million shares, according to its Wednesday IPO filing.
VG Acquisition Corp. said it has not selected a company to acquire, but it is looking for targets in the US and Western Europe that operate in one of Virgin Group’s core industries, which include travel, music, media, technology and financial