Exela Technologies shares (US:XELA) fell on Tuesday, reversing Monday’s jump after the global business process automation company said that its European subsidiary business, XBP Europe, would go public through a merger with a special purpose acquisition company (SPAC) transaction with Nasdaq listed CF Acquisition Corp. VIII (US:CFFE), sponsored by Cantor Fitzgerald.
This transaction gives the European business a $220 million enterprise value.
The transaction needs CFFE shareholder approval, which the company expects in 2023’s first half of.
When completed, the new company’s ticker will be US:XBP and the company will be renamed “XBP Europe Holdings Inc.”
Exela will retain and indirectly own a majority stake in the newly listed company.
At the end of September, Exela said its Healthcare Solutions division expanded a partnership with an unnamed health care company for about $8 million.
XBP Europe is a bill and payment integration company that connects suppliers with buyers across several industries and optimizes clients’ bills and payment processes.
The European subsidiary entered into a definitive merger agreement with
XELA shares closed Monday up 14% but still off 97% for the year.
XELA this week alone has risen 72 ranks in popularity and is now the 379th most held security by retail investors who have linked their portfolio for free with the Fintel platform.
On the institutional front, the stock sports a bearish 9.33 ownership accumulation score, placing it in the bottom 1.5% of the 31,466 companies screened.
XELA has one of the lowest levels of institutional interest across the world. Despite this, the company has 73 institutions that have filed 13D/G or 13F forms with the SEC. These firms include B. Riley Financial, Renaissance Technologies, Geode Capital, Rafferty Asset Management and Cantor Fitzgerald.
Exela will next update investors on November 10, when they will release third quarter financial results.
This article originally appeared on Fintel
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