(Reuters) — Financials Acquisition Corp. said on Wednesday it would seek shareholder approval next month for more time to set up a billion-pound ($1.28 billion) insurer.
The special acquisition firm, introduced in April 2022, said it has identified a potential target company that could see the company raise “substantial” additional funds.
It would become a listed operating company that distributes funds to the Lloyd’s of London insurance market for reinsurance purposes, the company said.
The company said it will seek shareholder approval next month to extend the deadline to complete a deal to the end of December.
“During the company’s search process, it became clear that the global specialty insurance market and specifically risk underwritten in the Lloyd̵
7;s market offered some of the most attractive risk-adjusted returns globally,” the company said in a statement.Lloyd’s has created a new structure, London Bridge 2 PCC Ltd., which will enable easier access for institutional capital to the market, the company said.
The company said it expects to have access to up to one billion pounds of capacity into the 2024 warranty year.
The proposals are at an early stage and the company said it remains confident that with the benefit of an extension it could complete this deal or another acquisition.
SPACS, once a frothy corner of the listing market, have a set period to find a target, with some having to return money to investors after failing to meet their agreed deadline.
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