KINIBIZ Tiger is a tad sad, and disappointed - waited for the postman these past few days but no reply. And then remembered those sacks of mail abandoned down a ravine near a forest. Bounded down there, but nary a mail for Tiger.

How stupid of Tiger! Of course, it’s the age of the Internet. Tiger was slow to catch onto this new human fad but recently got itself on Google. Fumbled with the mouse, as Tiger’s paws aren’t exactly equipped for these things.

Ah, yes, there was an email, could this be it. But it was from a long lost relative from Bengal. As exciting as that was, it was not as exhilarating as what I was waiting for. Where was the offer for the job Tiger applied for?

Regular followers of the Tiger trail will remember that Tiger put in an application - for the top post at Felda Global Ventures, did all the necessary lobbying but never got it. Must be all that discrimination and the fear they might find someone who can do the job.

Never mind, something else will turn up. Does it not always?

Which set Tiger thinking. Ever heard of Special Purpose Acquisition Companies or Spacs for short? Tiger’s eyes fairly nearly popped out when he read about this strange breed of company which first appeared in the US, Tiger believes, and was imported into this country. Tiger immediately decided it wanted to start one, why maybe even a family of them.

If you were wondering what is a Spac, Tiger’s coming to that right now. A Spac is started by some so-called experts in something or other who want to buy something or other for a business but don’t have the money for it.

So they ask you and me and anyone else for some via an initial public offering on the market, giving in return shares and warrants (a right to get shares at a predetermined price). Trouble is they don’t know - yet - what they are going to buy and you give them up to two or even three years to do so.

The consolation is that they come back to you and me if they find something for approval. Then, at a shareholders’ meeting, if we approve, they buy. In the meantime, they have all their expenses paid for.

            

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This article was written by P Gunasegaram.