Co-Working Operator Flexi to Go Public in $205M SPAC Deal With Tsangs Group

Less than a week after announcing its consolidation of three APAC-focused co-working operators, Flexi Group on Monday revealed plans to go public in the US through a merger with a special purpose acquisition company.

Flexi is combining with NASDAQ-listed TG Venture Acquisition Corp, a SPAC sponsored by the Hong Kong-based Tsangs Group family office, the flexible workspace operator said in a release. The transaction reflects an implied pro forma enterprise value of $205 million, according to TG Venture’s financial advisors.

The startup led by CEO Chris Edwards unified regional players The Hive, Common Ground and The Cluster under one umbrella this year and is expected to trade on the NASDAQ under the ticker symbol FLXG after the deal closes in the second quarter of 2023.

“Following the business combination, The Flexi Group plans to embark on a consolidation strategy across APAC into North America, UAE and Europe,” the company said.

Unanimous Board Approval

The merger, which was unanimously approved by the boards of Flexi and TG Venture, remains contingent on the support of those firms’ respective shareholders. Completion of the transaction is subject to customary closing conditions, including that the blank-cheque SPAC hold net tangible assets of at least $5,000,001 immediately before closing, net of redemptions and liabilities.

The recent consolidation of the three co-working brands was supported by investment from Singapore-based Catcha Group and Malaysia’s Emissary Capital, according to Flexi, which is likely to be headquartered in Kuala Lumpur.

The unified group boasts a portfolio of 45 locations across Hong Kong, Singapore, Malaysia, Australia, Thailand, Taiwan, Vietnam, Philippines and Japan.

Flexi touts an asset-light approach to its real estate ventures, partnering with landlords on joint ventures instead of taking on large and unwieldy rental agreements. The group’s landlord partners in Asia include developer Chinachem in Hong Kong, state energy firm Petronas in Malaysia and mall operator Central in Thailand, with more to be added in the next few months, according to the startup.

Family Office Funding

Tsangs Group launched its San Francisco-based SPAC in November of last year with a $100 million initial public offering on the NASDAQ exchange and a goal of targeting tech-related businesses in the US and other developed countries.

Led by fourth-generation chairman Patrick Tsang, the family office traces its origins to the first half of the 20th century, when the Hong Kong-based Tsang clan started a number of restaurants in the UK and then began investing in real estate in Britain, Hong Kong and later mainland China, according to local media reports.

In more recent times, Tsangs Group has invested in a broad range of ventures including Puerto Rico-based DeFiance Media, mine operator Vale International Group and WeChat-enabled online payment firm BlueOcean Pay.

“Tsangs Group has a vision to create value with a positive impact and a positive influence to make the world a better place,” the chairman said at the time of the SPAC’s IPO. “We are excited to find acquisition candidates for TG Venture that fit the vision and create shareholder value.”