Light Street Capital, a major owner of
TPG Pace Beneficial Finance Group (TPGY), has added an additional 251,907 shares. The total cost to acquire those shares came to just under $3.3 million.
This marks the first insider buy since last March, from a different fund manager that’s a major holder of shares. Overall, these two funds have been the only insiders to make any activity, and they’ve exclusively bought more shares.
Overall, institutions own over 62 percent of shares. TPGY is a special purpose acquisition company, or SPAC. They’re currently in the process of acquiring EVBox, the largest electric vehicle charging station company in Europe.
Typically, funds that are major investors in SPAC deals also provide additional capital outside the deal, known as PIPE financing. That suggests that these owners who continue to pick up shares see them as undervalued.
Action to take: Shares are well above the $10 per share that SPAC companies initially trade at. That premium suggests that the market likes the deal for EVBox, and that there’s still upside after the deal is through. When the deal is completed, buyers of TPGY will own a stake in EVBbox.
For traders, the October $15 call, going for about $1.15, offers leveraged upside to a deal going through in the next few months.
Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.