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Liberty Media Acquisition Corp. (NASDAQ:LMACA) shareholders have approved a charter amendment that will allow it to unwind by year’s end, after which the SPAC may have been required to pay a new 1% federal excise tax on any share repurchases or redemptions.
The SPAC’s new termination date is Dec. 1, moved up from its prior date of Jan. 26. LMACA said in a filing in late October that by unwinding before the end of the year, it would avoid the possibility of having to pay a new 1% excise tax on certain stock repurchases as required under the recently passed Inflation Reduction Act of 2022.
The SPAC made the decision to unwind due to its inability to find a suitable business combination. LMACA shares will be redeemed for $10.07 in cash, for an aggregate of around $448M.
LMACA’s sponsor also holds a 20% interest in Liberty Media’s Formula One Group (FWONA) (FKWONK).
The SPAC went public in January 2021 with the goal of consummating a business combination in the media, music, entertainment, communications, telecommunications or technology sector. LMACA’s initial public offering raised $500M.
Image and article originally from seekingalpha.com. Read the original article here.