Berkshire Hathaway invested a further $330 million in Bending Spoons, lifting its stake in the Italy-based acquirer to 4%. Bending Spoons shares jumped after a securities filing revealed the deal.
Shares of Bending Spoons skyrocketed 35% after a new securities filing showed Berkshire Hathaway made a fresh $330 million investment in the company. The move follows the conglomerate's $600 million investment in July, when the Italy-based serial acquirer went public on the Nasdaq.
Deal terms and Berkshire's stake
Under the deal, Bending Spoons will issue 10 million ordinary shares to Berkshire at $33 a share. According to the filing, the investment brings Berkshire's stake to 4%.
Investing.com describes the transaction as a private placement exempt from Securities Act registration, subject to customary closing conditions. It adds that further details will appear in an upcoming Form 6-K filing.
Shares extend gains since the listing
The Financial Times reported that Bending Spoons shares were up by one-third in Wednesday morning trading and gained as much as 54.7% shortly after the opening bell. That took gains since the Nasdaq listing to about 74%, giving the group a market capitalization of $33 billion, the FT said.
The FT also noted that Berkshire has invested in initial public offerings before but only rarely. Its earlier stakes in public listings include Snowflake in 2020 and StoneCo in 2018.
Management says acquisition pipeline remains strong
Bending Spoons co-founder Francesco Patarnello said in a statement, according to CNBC: "Bending Spoons continuously evaluates M&A opportunities, and our pipeline remains strong"
The deal arrives as CEO Greg Abel leads Berkshire after taking over from Warren Buffett at the start of the year.
Sources: CNBC, Financial Times, Investing.com
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