Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Trump deal delivers $420 million windfall for dealmaker

10/22/2021 | 07:00am EST
Former U.S. President Donald Trump attends a rally in Perry

(Reuters) -A merger with former U.S. President Donald Trump's new social media venture has delivered a potential windfall of $420 million for a former finance executive who has been trying for a decade to reinvent himself as a serial dealmaker.

Benessere Capital CEO Patrick Orlando's stake in Digital World Acquisition Corp, the Miami-based blank-check acquisition firm he is leading, was worth $423 million on Thursday after his deal to merge with Trump Media and Technology Group was announced, according to a regulatory filing and Reuters calculations.

Orlando invested only $3 million in Digital World, and is set to receive the windfall because the deal entitles him to additional compensation in shares as sponsor of the firm, the filing shows. Digital World shares ended trading on Wednesday up 357% after the deal was announced, giving the firm a market value of close to $1.5 billion.

To be sure, these gains are on paper. The terms of the SPAC do not allow Orlando to cash out until six months after the merger has been completed.

It is nonetheless a remarkable reversal of fortune for the former Deutsche Bank AG derivatives banker who worked in Peru's biofuel industry and for a U.S. sugar trading company before trying his hand at special purpose acquisition companies (SPACs).

He launched Benessere in 2012 to advise other companies on their deals but it was not until last year that he launched four SPACs with the help of Shanghai-based investment bank ARC Capital.

He struggled to gain traction. One of his SPACs, which was based in Wuhan, China, failed last month to complete a merger with Giga Energy Inc that would have valued the transportation solutions provider at $7.3 billion, because it could not deliver the cash required, according to regulatory filings.

Orlando did not respond to requests for comment.

Trump Media said it would receive $293 million in cash that Digital World had in a trust if no shareholder of the acquisition firm chose to cash in their shares.

The company said it planned a trial version of its social media app next month and a full roll-out in the first quarter of 2022.

(Reporting by Anirban Sen in Bangalore and Jessica DiNapoli in New York;Additonal reporting by Matt Scuffham in New York; Editing by Stephen Coates)

By Anirban Sen and Jessica DiNapoli


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
DIGITAL WORLD ACQUISITION CORP. 21.77% 86.31 Delayed Quote.67.82%
PACIFIC ARC RESOURCES LTD. 0.00% 0.2 Delayed Quote.0.00%
Latest news "Economy & Forex"
01:50aRichemont sales jump shows luxury revival
RE
01:49aNY AG seeks testimony from Trump, his children over financial dealings
RE
01:48aSingapore airlines says will reach out to customers affected by aircraft change
RE
01:48aSingapore airlines says will continue to monitor situation and work closely with regulators, boeing
RE
01:48aSingapore airlines says has adjusted aircraft deployment on select u.s. services after 5g rollout, based on guidance from boeing, consultation with regulators
RE
01:46aASML profit beats despite Berlin fire; sees 20% sales growth in 2022
RE
01:44aChina cyberspace regulator drafts new rules for internet behemoths - sources
RE
01:44aRefile- qatar airways says it is currently operating as scheduled on all 12 u.s. routes
RE
01:32aAre hospital admissions still the best way to gauge the COVID crisis?
RE
01:31aJapan poised to widen COVID-19 curbs as Omicron drives record infections
RE
Latest news "Economy & Forex"