With all the Special Purpose Acquisition Companies (SPAC’s) that have filed to come public, many SPAC’s haven’t proposed an actual business move they are designed to execute. Blank check company GSC Acquisition Company (AMEX: GGA) announced a proposed merger with Complete Energy, an independent power generation company with assets in California and the Southeast. GSC values Complete Energy at $1.3 billion. Complete Energy stakeholders will receive 44 million shares and GSC will own 42% of the new company on a fully diluted basis.
Hugh Tarpley, co-founder of Complete Energy, will act as CEO. GSC went public June 2007 for $10 per share and generated $167.4 million in proceeds. Shares are up over 1% today at $9.36. The market cap sits at approximately $235 million.
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May 12, 2008