Irish-backed ‘blank cheque’ firm to raise $345m in US
Company targets metal resources used in low energy technology
DUBLINER John Carr has joined a suite of veteran top brass in the global resources sector planning to raise $345m (€284m) in the United States via a so-called blank cheque company to fund a significant acquisition – most likely in the mining sector.
Mr Carr, who’s based in Ireland, has been involved in resources and other sectors including property.
The other backers of the blank cheque firm, ESM Acquisition Corporation, include Mick Davis, the former CEO of mining giant Xstrata. He serves as ESM’s chief executive. Xstrata was acquired by Glencore in 2013.
ESM’s other board members include chairman John Raymond. He’s a co-founder
and CEO of The Energy & Minerals Group (EMG), a natural resources-focused private equity firm. Since it was established in 2006, EMG has raised about $11bn in capital across five funds and an additional $5bn via co-investments. Other senior EMG executives are also on the board of ESM, as is Mr Carr.
“While we may pursue a target in any industry, section or geography, we intend to seek a target that is positioned to benefit from the global transition towards a low carbon economy, including but not limited to the shift away from fossil fuels, the light-weighting and electrification of vehicles and the reduction of carbon emissions from key industrial processes,” notes the ESM prospectus.
Blank cheque companies are special purpose acquisition corporations (SPAC) that have no existing business or track record and are established solely to raise funds to undertake an acquisition. The companies secure a stock market listing without having to navigate the traditional flotation process.
Mr Carr has worked as a resources sector consultant and broker. He headed Arcadia Petroleum’s crude oil futures and forwards business and a crude oil marketing team at the firm until 1999. He is also credited in the ESM prospectus with having built and led commodities trading teams for Salomon Brothers’ energy trading subsidiary Phibro Energy.
Mr Carr, whose late father was the leading Irish amateur golfer Joe Carr, is currently on the board of US-based data solution company Advantek and on the advisory board of real estate investment specialist Amherst Capital.
“Mr Carr’s financial, business and operational experience, as well as the experience that he has accumulated through his activities as an executive and investor, add strategic vision to the board of directors to assist with our ultimate business combination transaction,” notes the ESM prospectus.
The company, which will be listed in New York upon successfully completing its fundraising, said its board’s expertise in the mining and natural resources sectors provides it with a “competitive edge” in finding an attractive acquisition target that explores for, or mines, processes or refines commodities that are “critical in order to achieve de-carbonisation”. The commodities may include copper, cobalt, graphite, lithium, platinum and palladium.
Last month, a SPAC headed by two Irish businessmen, North Atlantic Acquisition Company, raised an initial $330m via a US floatation.