Key points:
- Shares of Generation Essentials Group, merged with Lawrence Ho-backed SPAC, rose 234% intraday before closing at $10.04
- The company’s include span media, fashion, entertainment and financial investments
Generation Essentials Group experienced significant volatility during its first day of trading on the New York Stock Exchange following the completion of its merger with Black Spade Acquisition II, a special purpose acquisition company sponsored by Lawrence Ho’s Black Spade Capital.
The stock rose as much as 234% before closing nearly flat at $10.04, reflecting a market capitalisation of approximately $533m.
The transaction values the combined entity at an equity value of $488m and an enterprise value of $892m.
Generation Essentials Group is a subsidiary of AMTD Digital and was previously known as World Media and Entertainment Universal. The company’s operations include ownership of media brands such as L’Officiel and The Art Newspaper, film production with reported box office revenues of $400m and hospitality assets in Asia.
According to the company, strategic investments represented 45% of its $77m in 2024 revenue. Net profit for the year was reported at $44.7m, attributed in part to the sale of non-core business segments.
Good to know: This is Lawrence Ho’s second SPAC merger following the 2023 deal involving VinFast Auto
A Black Spade Capital spokesperson stated: “We are actively exploring new ideas and collaborations to enhance value on both sides
“With TGE’s hardworking team and innovative spirit, and now a solid capital raising platform, we are confident they will reach the next level and become a leading global force in media, fashion, and art.”
Black Spade Acquisition II was first set up to buy a company in entertainment, lifestyle or tech that uses AI. Its merger with Generation Essentials Group stays close to that plan, focusing on media and entertainment.
