Lower oil prices bode well for SPACs

Hadian:

Falling oil prices are starting to make oil and gas (O&G) special-purpose acquisition companies (SPACs) that have yet to make their qualifying assets (QA) look more attractive.

With oil prices having plunged below the US$50 (RM178) level, the ability of these SPACs to negotiate better pricing is increasing by the day. However, the biggest downside is management having to seal a deal before the deadline of its expiry because SPACs have a limited shelf life.