Magnum Opus’ Business Combination with Forbes

Kirkland & Ellis represented Magnum Opus, while Cadwalader, Wickersham & Taft represented Forbes. King & Spalding advised JonesTrading in the transaction.

Forbes Global Media Holdings Inc., the iconic business information brand that convenes and curates the most influential leaders driving change, and Magnum Opus Acquisition Limited (NYSE: OPA), a publicly traded special purpose acquisition company focusing on global consumer, technology and media sectors, have entered into a definitive business combination agreement. The transaction is expected to close in late fourth quarter 2021 or early first quarter 2022 and will enable Forbes to further capitalize on its successful digital transformation, using technology and data-driven insights to create more deeply engaged audiences, and associated high-quality and recurring revenue streams.

The transaction values the combined company at an implied pro forma enterprise value of $630 million, net of tax benefits.  

The transaction is expected to raise approximately $600 million of gross proceeds consisting of the contribution of approximately $200 million of cash held in Magnum Opus’ trust account, assuming no redemptions by the public shareholders of Magnum Opus, and $400 million of additional capital through a private placement of ordinary shares of the combined company (“PIPE”) priced at $10.00 per share from funds and accounts managed by top-tier institutional investors.

Assuming no redemptions by the public shareholders of Magnum Opus, Forbes shareholders will own approximately 22% of the combined company at closing. Forbes will be capitalized with up to $145 million in cash.

Credit Suisse acted as capital markets advisor to Magnum Opus. JonesTrading Institutional Services acted as placement agent on the PIPE.

The Forbes brand today reaches more than 150 million people worldwide through its trusted journalism, signature LIVE and Forbes Virtual events, custom marketing programs and 45 licensed local editions covering 76 countries. Forbes Media’s brand extensions include real estate, education and financial services license agreements. 

Magnum Opus Acquisition Limited is a special purpose acquisition company sponsored by L2 Capital, a private investment firm. Magnum Opus is a partnership of enterprise builders and public and private market investment specialists with extensive experience operating and investing throughout the business life cycle from founding, scaling operations through public listing. 

The Cadwalader team was led by Corporate co-chair William Mills (Picture) and partner Joshua Apfelroth and included Corporate associates Lindsey Kister, Adam Tamzoke and Monica Lindsay; Tax partner Linda Swartz and associate Matthew Seitz; Intellectual Property partner Dorothy Auth and associate Dash Cole; Antitrust partner Joel Mitnick and counsel Ngoc Hulbig; Litigation partners Jodi Avergun and Jared Stanisci and associate Keith Gerver; and Employee Benefits and Compensation counsel Nicholas LaSpina.

The Kirkland team was led by transactional partners Jesse Sheley, Gary Li and Joseph Raymond Casey and capital markets partner Steve Lin, with assistance from transactional partners Ram Narayan and Pierre Arsenault. The team also included transactional associates Benjamin Yao and Zhixin Liu, capital markets partners Samantha Peng and Louis Rabinowitz and associates Olivia Wang, Jenny Han, Zifei Liu and Rachel Xing, government & internal investigations partner Cori Lable, international trade & national security partners Ivan Schlager, Daniel Gerkin and Nathan Mitchell, tax partner Mike Carew and associates Michael Conroy and Allison Bray, technology & IP transactions partners Seth Traxler and Min Wang and associate RJ McLaughlin, real estate partner Roberto Miceli and associate Lizbeth Cordova, antitrust & competition partners Carla Hine and Mike Robert-Smith, executive compensation partner Rob Fowler and associates Andrew Hedman and Julia Lee, employment & labor partner Richard Kidd and of counsel Evangelia Podaras, employee benefits partner Maureen O’Brien and of counsel Patrick Ryan, and debt finance associate Anthony Chan.

Involved fees earner: Joshua Apfelroth – Cadwalader Wickersham & Taft; Dorothy Auth – Cadwalader Wickersham & Taft; Jodi Avergun – Cadwalader Wickersham & Taft; Dash Cole – Cadwalader Wickersham & Taft; Keith Gerver – Cadwalader Wickersham & Taft; Ngoc Hulbig – Cadwalader Wickersham & Taft; Lindsey Kister – Cadwalader Wickersham & Taft; Nicholas Laspina – Cadwalader Wickersham & Taft; Monica Lindsay – Cadwalader Wickersham & Taft; William Mills – Cadwalader Wickersham & Taft; Joel Mitnick – Cadwalader Wickersham & Taft; Matthew Seitz – Cadwalader Wickersham & Taft; Jared Stanisci – Cadwalader Wickersham & Taft; Linda Swartz – Cadwalader Wickersham & Taft; Adam Tamzoke – Cadwalader Wickersham & Taft; Pierre Arsenault – Kirkland & Ellis; Allison Bray – Kirkland & Ellis; Mike Carew – Kirkland & Ellis; Joseph Casey – Kirkland & Ellis; Anthony Chan – Kirkland & Ellis; Michael Conroy – Kirkland & Ellis; Lizbeth Cordova – Kirkland & Ellis; Robert Fowler – Kirkland & Ellis; Daniel Gerkin – Kirkland & Ellis; Jenny Han – Kirkland & Ellis; Andrew Hedman – Kirkland & Ellis; Carla Hine – Kirkland & Ellis; Richard Kidd – Kirkland & Ellis; Cori Lable – Kirkland & Ellis; Julia Lee – Kirkland & Ellis; Gary Li – Kirkland & Ellis; Steve Lin – Kirkland & Ellis; Zhixin Liu – Kirkland & Ellis; Roger McLaughlin – Kirkland & Ellis; Roberto Miceli – Kirkland & Ellis; Nathan Mitchell – Kirkland & Ellis; Ram Narayan – Kirkland & Ellis; Maureen O’Brien – Kirkland & Ellis; Samantha Peng – Kirkland & Ellis; Evangelia Podaras – Kirkland & Ellis; Louis Rabinowitz – Kirkland & Ellis; Mike Robert-Smith – Kirkland & Ellis; Patrick Ryan – Kirkland & Ellis; Ivan Schlager – Kirkland & Ellis; Jesse Sheley – Kirkland & Ellis; Seth Traxler – Kirkland & Ellis; Olivia Wang – Kirkland & Ellis; Min Wang – Kirkland & Ellis; Rachel Xing – Kirkland & Ellis; Benjamin Yao – Kirkland & Ellis;

Law Firms: Cadwalader Wickersham & Taft; Kirkland & Ellis;

Clients: Forbes Global Media Holdings; Magnum Opus Acquisition;

Martina Bellini

Author: Martina Bellini