Today, we have seen what may be one of the few special purpose acquisition companies, or SPAC’s, see a return of capital with a proposed deal voted down by shareholders.
Shanghai Sentry Acquisition Corp. (AMEX: SHA) just announced today that its annual and extraordinary meeting of shareholders was held and shareholders have voted down its proposed acquisition of Asia Leader Investments Limited.
Under the terms of the charter, the company is not permitted to pursue any other transactions and will shortly begin the process of liquidating and dissolving itself in accordance with the charter. Applicable laws will result in the amount held in its trust account (together with interest) will be returned to the public shareholders. No payments will be made in respect of the outstanding warrants or to any of its initial shareholders in the initial public offering.
This company was formed in April 2006 and it raised $115 million through an initial public offering. Back in February, this company terminated one acquisition to pursue the other and this vote had been delayed.
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Jon C. Ogg
April 29, 2008