If the market recovers, Traveloka may revisit talks with Bridgetown or a different SPAC, one person said. The two sides will continue to monitor the situation in the coming weeks, this person said.
A representative for Traveloka wasn’t immediately reachable for comment. Bridgetown declined to comment.
SPACs -- shell companies that raise money from investors through a listing on the promise of merging with an unidentified private company -- have been one of the hottest trends of global markets over the past year. Of the $461 billion raised globally through IPOs this year, about US$131 billion went to SPACs before the booming market came to a near-standstill.
The US Securities and Exchange Commission has stepped up its scrutiny of them this year after the fundraising surge. Chairman Gary Gensler has called for more transparency around their financial structure.
Bridgetown closed Friday at US$9.97, just shy of its US$9.71 historic low. The stock surged as high as US$17.37 in February.
Traveloka had been in talks with Bridgetown since around April as it sought funds for growth to expand its geographic reach as well as the range of its services, Bloomberg News has reported. The deal could have valued the company at about US$5 billion.
