Advertisement
Tim Hortons’ China unit to merge with US-listed blank cheque company, opening a new path for Chinese firms to list in New York
- Tim Hortons’ China venture will merge with Silver Crest Acquisition, with plans for a Nasdaq listing, valuing the company at US$1.7 billion
- Existing shareholders, including Tencent Holdings and Sequoia Capital, will own 80 per cent of the shares after the merger
Reading Time:3 minutes
Why you can trust SCMP
The operator of the Canadian doughnut-and-coffee chain Tim Hortons will list its China joint venture in New York via a merger with a special purpose acquisition company (SPAC), as the so-called blank cheque companies become the latest route to the capital markets following regulatory crackdowns and tighter rules by the United States and China.
Tim Hortons China, known simply as Tims in the mainland market, will merge with Silver Crest Acquisition, a so-called blank cheque company backed by the private equity firm Ascendent Capital Partners, for a listing that values the two-year-old venture at US$1.7 billion, according to a regulatory filing. The transaction is expected to complete in the fourth quarter.
Tims is operated as a venture between the private equity firm Cartesian Capital Group and Restaurant Brands International, which owns Tim Hortons as well as the franchises for Burger King and Popeyes. Sequoia Capital China and Tencent Holdings are also investors. The existing shareholders will own about 80 per cent of Tims after the merger with Silver Crest, according to the filings.
Advertisement
“[Tim Hortons China] is a unique opportunity to tap into the phenomenal growth that we’re seeing in the Chinese coffee market,” Ascendent’s chairman and chief executive Leon Meng said on a call with investors.
03:34
SPACs: Everything you need to know about the finance world’s new big thing
SPACs: Everything you need to know about the finance world’s new big thing
The deal follows the sweeping measures to overhaul overseas listings announced last month by China, adding a new layer of cybersecurity oversight to the listing plan by any company with access to the data of more than 1 million Chinese consumers. Two weeks after the hurdles came down on technology companies, online education providers and after-hour tuition schools were banned from raising funds from the capital markets.
Advertisement
Amid China’s tighter scrutiny, the Securities and Exchanges Commission (SEC) chairman Gary Gensler also raised the barrier for Chinese companies seeking to raise capital in New York, citing risks and uncertainties about their operations. Chinese companies should “disclose more of the information we need to make informed investment decisions,” Gensler said in a Twitter post on Monday, asking SEC staff to “take a pause for now” in giving approval to listings by Chinese companies who use shell companies to go public on American bourses.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x