CC Neuberger Principal Holdings II - An Update

CC Neuberger Principal Holdings II - An Update


Solenis A No-Go

As I wrote about back in June, the specialty chemical company was rumored to be in talks with Chinh Chu's SPAC -- assumed to CC Neuberger Principal Holdings II (NYSE: PRPB). Chu also has a second active SPAC CC N.P.H. III (NYSE: PRPC). As fate would have it, talks must have fallen through with Chu as Solenis was ultimately acquired by Platinum Equity in a deal worth $5.25 billion. 

Another Rumor, No Deal

Also back in June, CC Capital was reported to be in talks to acquire British office space provider IWG for a deal valuing the company at approximately $5.5 billion. IWG, which is a direct competitor of WeWork, made no comments on a proposed deal. Ultimately, the firm denied the rumor and nothing more has come of it:

CC Capital Partners LLC ("CC Capital") notes the recent press speculation regarding a potential offer for IWG PLC ("IWG"). CC Capital confirms that it does not intend to make an offer for IWG.

As a result of this announcement, CC Capital agrees that it will, except with the consent of the UK Panel on Takeovers and Mergers (the "Panel"), be bound by the restrictions contained in Rule 2.8 of the Code.

For the purposes of Rule 2.8 of the Code, CC Capital reserves the right to announce or participate in an offer or possible offer for IWG and/or to take any other action which would otherwise be restricted under Rule 2.8 of the Code within 6 months after the date of this announcement in the following circumstances described in Note 2 to Rule 2.8 of the Code: (i) with the consent of the Board of IWG; (ii) if a third party (including another publicly identified potential offeror) announces a firm intention to make an offer for IWG; (iii) if IWG announces a "whitewash" proposal (as referred to in Note 1 of the Notes on Dispensations from Rule 9 of the Code) or a reverse takeover (as defined in the Code); or (iv) if the Panel determines there has been a material change of circumstances.

CC Capital, and any person acting in concert with CC Capital, reserves the right to acquire IWG shares or interests in IWG shares subject to and in accordance with Rule 2.8 of the Code.

Rumor Mill Runs Dry, Shares Trade Higher

While no rumors have arisen since Solenis and IWG, shares of PRPB have recently been trading at or above June levels. It's a bit odd but perhaps the two aforementioned companies simply didn't excite investors. Whatever the reasons, the common shares have clearly been on an uptrend since August:

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As per usual, LinkedIn offers little to no insight as to what the management team may be scouting or interested in. 

Douglas Newton was featured in a brief, unrevealing interview back in June:

Perhaps the only clue to be found is from last month when CC Capital announced their updated website:

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"...the leading edge companies we'll have the honor to partner with"

Chu's multi-million dollar estate was recently featured in Forbes' Billionaires' Dirt Road article for what it's worth:

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As I've said before, SPAC companies searching for a target are essentially a bet on management. In my opinion, Chu and company are one of the best in finding value as they have the deal-making experience. Sometimes, SPACs are hot and sometimes they are not. There certainly seems to be a cycle to it. Regardless, these deals take months and sometimes years to make. The deadline for PRPB is July 2022, unless there's an extension. A lot can happen (or not) in that time.

This blog post represents my opinion and is not financial advice. I am not a financial advisor, just a rocket enthusiast. Always perform your own due diligence and any trades/investments you do is at your own risk. I hold shares of PRPB.


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