Luxembourg Stock Exchange issues guidelines supporting SPAC sponsors
Following the recent issue of a public statement by the European Securities and Market Association (“ESMA”) on the prospectus disclosure and investor protection considerations raised by special purpose acquisition companies (“SPACs”), the Luxembourg Stock Exchange (“LuxSE”) has published on 19 August 2021 guidelines supporting SPAC sponsors and other professional intermediaries in listing SPAC vehicles on its markets, while protecting the interests of investors and market integrity.
As outlined by the ESMA in its public statement, SPAC transactions are various and complex, most often involving different company laws and market practices, and specific risks and costs are embedded with this structure. The guidelines published by the LuxSE are aligned with the recommendation made by the ESMA to promote uniform disclosures and scrutiny from national competent authorities in order to strengthen the comprehensibility and comparability of SPACs prospectuses for investors.
The LuxSE recommends that sponsors of SPACs take into account a number of recommendations as part of the structuring process of SPACs.