The planned merger between MNG Airlines (MB, Istanbul Airport) and special purpose acquisition entity Golden Falcon Acquisition is off. In an 8K SEC filing dated August 8, Golden Falcon said the termination of the merger was effective immediately and was by mutual agreement.
The filing did not say why the parties called the merger off, but a Wall Street Journal report suggests it was because they could not meet an August 24 deadline to finalise it. The decision also ends MNG Airlines' immediate hopes of trading on the New York Stock Exchange (NYSE) - the reason for the merger.
Golden Falcon Acquisition Corporation is listed on the NYSE (code: GFX), and the planned reverse IPO, valued at USD676 million when announced last December, would have allowed the Turkish cargo carrier to more easily tap into US capital pools. “We see significant value creation potential from becoming a publicly listed company in the US," said MNG Airlines CEO Ali Sedat Özkazanc at the time. Özkazanc did not respond to ch-aviation's request for additional comments.
MNG Airlines reported a calendar 2022 profit of USD66.7 million on revenues of USD359.3 million. According to ch-aviation PRO airlines data, it operates scheduled cargo flights to 15 destinations in 11 countries with a fleet comprising one A300-600(F), three A300-600R(F)s, one A321-200(P2F), one A330-200F, and two A330-300(P2F)s.
"As a result of the termination of the business combination agreement, the business combination agreement is void, and there is no liability under the business combination agreement on the part of any party thereto, except as set forth in the business combination agreement ," reads Golden Falcon's filing. "Pursuant to the termination agreement, subject to certain exceptions, Golden Falcon and MNG have also agreed, on behalf of themselves and their respective related parties, to a release of claims relating to the proposed business combination."
Established in 2020, Golden Falcon describes itself as "a special purpose acquisition company that offers an attractive path for a company to access the public markets in the US." In December, Golden Falcon CEO Makram Azar said they had screened over 500 companies before deciding to throw their lot in with MNG Airlines. Golden Falcon has not said if there is another target entity on their radar.