Singapore SPAC Pegasus Asia gives up on finding merger, acquisition target

SINGAPORE, Dec 20 (Reuters) - Pegasus Asia, a Singapore-based special purpose acquisition company (SPAC) backed by alternative asset manager Tikehau Capital, said on Wednesday it would not make an acquisition by a Jan. 20 deadline and would close down.

The shell company, which was listed on the Singapore bourse in January 2022, had two years to acquire or merge with another business but said its board of directors had ruled against a deal "after considering macroeconomic and market conditions".

It said it will make an announcement in due course on its next steps, which would involve the redemption of its issued outstanding shares, and then proceed to cease operations and wind up its business.

There will be no redemption rights nor liquidating distributions regarding its warrants, Pegasus said.

Singapore-listed SPACs have two years to acquire or merge with a company, with the option for a one-year extension, subject to certain conditions. Pegasus did not say it is seeking an extension.

(Reporting by Yantoultra Ngui; Editing by Sonali Paul)