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Proximus terminates Telesign, NAAC merger

Guillaume Boutin Proximus NEW.jpg

The merger between Proximus’ subsidiary TeleSign and the North Atlantic Acquisition Corporation (NAAC) has been terminated.

Proximus says that the customary conditions precedent which involved the minimum cash condition were not met by June 30.

The termination of the deal, which was announced on December 16, 2021, is a result of “high volatility” in market trading, the Belgian operator added in a statement.

Guillaume Boutin, CEO of Proximus Group said: “We regret that the market conditions do not enable the envisioned business combination between TeleSign and NAAC, despite the strong commercial performance of TeleSign in recent quarters.

“We remain confident as ever in TeleSign’s future growth, sound strategy and strong value propositions.

“We are very satisfied with TeleSign’s track record so far and reiterate our commitment to further supporting its growth trajectory, driven by a strong belief in the company’s potential and compelling equity story.”

Proximus had earlier contemplated selling a minority stake in TeleSign by merging it with a special purpose acquisition company (SPAC).

Proximus adds that it will consider different methods to raise US$90 million in funding for TeleSign to realise its published growth trajectory.

It remains optimistic for TeleSign’s future, noting that it is “well equipped” to pursue growth.

Last week, Proximus announced that it had teamed with Nokia to successfully enhance the performance of 5G network slicing in demanding network conditions.

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