08 March 2021

Alex Chesterman is in discussions with a US Spac about a merger that could value it at as much as £6bn. Ajax I floated in new York last year and is seeking acquisition targets. Talks with Cazoo have been taking place for several weeks. If it goes through, the deal would represent the largest British company by valuation to go public via a Spac.

ALSO READ: What is a Spac?

Cazoo is also understood to be weighing a London Stock Exchange listing alongside merging with a US-listed Spac. Some London fund managers say the firm would struggle to attract investors  given how it only went live in December 2019. However, “sources close to Cazoo continue to believe that a London IPO is the most likely outcome,” reports Sky News.

Last week, the Evening Standard reported a Goldman Sachs banker personally invested in Cazoo before his bank won the IPO contract. His shares “could be worth a small fortune” if the IPO reaches the billions mooted. Founder Alex Chesterman owns the bulk of shares – around 30% – while the Daily Mail and General Trust also owns 20% of Cazoo.

A £6bn valuation would make Mr Chesterman £1.5bn.

Cazoo has already privately raised £450m – more than two times the entire stock market value of Pendragon and over three times that of Vertu. The company has sold 20k cars and made £200m in revenue since launch.

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Tags: Cazoo