Insurance broker HCYC is set to go public by merging operations with special purpose acquisition company (SPAC) AlphaTime Acquisition.
The combined group will be listed on the NASDAQ under a new ticker symbol and will remain under the leadership of HCYC’s existing management.
Go deeper with GlobalData
This deal will be executed through multiple mergers. It includes AlphaTime merging with and into acquisition entity Merger Sub 1, with AlphaTime surviving the merger.
Subsequently, AlphaTime will merge with and into Merger Sub 2, with Merger Sub 2 emerging as the surviving entity.
Finally, HCYC will merge with and into Merger Sub 3, with HCYC surviving the merger.
As per the agreement, HCYC shareholders are set to receive 7.5 million shares of the resulting entity, valued at $75m (HK$585.56m).
HCYC conducts its insurance brokerage operations in Hong Kong through its subsidiary, HCYC Wealth Management (ASIA) Company, HCYC Asia.
HCYC Asia has been operating in Hong Kong for 13 years and holds a professional insurance brokerage licence.
The company partners with multiple insurance companies including AXA China Region Insurance, AIA International, Prudential Hong Kong and FTLife Insurance.
The executive management team of HCYC will continue to lead the newly formed entity, ensuring continuity in leadership and strategy.
Both AlphaTime and HCYC boards of directors have approved the merger.
The transaction now awaits clearance from regulators and the shareholders of both companies, with completion expected early this year.
Winston & Strawn is providing legal counsel to AlphaTime, while its advisors in Hong Kong and Cayman are Han Kun Law Offices and Ogier.
HCYC is receiving legal counsel from Celine & Partners.
