French billionaire owner of Eir backs push into organic foods

Though several European business tycoons have lined up similar stock market listings, many have shunned their home turf to tap New York’s deeper pool of investors.

Wed, 09 Dec, 2020 - 18:38

Shares in a special purpose firm, or Spac, backed by French billionaire Xavier Niel and two other partners, have surged on its debut in Paris after raising €300m to seek out acquisitions potentially across Europe for organic food.

Mr Niel is best known here for the significant control he has over Eir, which he has strengthened since 2018 through his French telecoms firm Iliad and his own NJJ investment firm. He is also a stakeholder in Le Monde newspaper.

In Europe’s largest such listing of the year, the special purpose acquisition company called 2MX Organic was brought to market by Mr Niel, Matthieu Pigasse, who runs Centerview Partners’ Paris office, and supermarket chain owner Moez-Alexandre Zouari.

2MX Organic shares rose on its debut as the company plans to tap into heightened demand for organic food and sustainable consumer goods by acquiring one or several businesses in the sector.

Listing a Spac has been the go-to method for wealthy sponsors to raise money for takeovers this year, with a record $74bn (€61bn) raised in the US.

Though several European business tycoons have lined up similar stock market listings, many have shunned their home turf to tap New York’s deeper pool of investors.

Only one other Spac has listed on a European stock exchange this year: Dutch Star Cos Two BV, which started trading in Amsterdam last month.

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Meanwhile, 2MX Organic's offering alone raised more than all other French IPOs in 2020 combined.

2MX Organic intends to make its first acquisition for as much as €2bn in the first half of next year, said Edouard Lacoste, the head of Zouari’s family office and an adviser to 2MX Organic’s board, at the online opening bell ceremony at the exchange.

This first acquisition will be followed by others since this market is very dynamic, he said. “More and more consumers are turning their attention to local and healthy produce, which respects the environment and animal wellbeing.”

Demand for organic food in Europe has increased by 120% on average across the continent since 2010, according to the company’s IPO prospectus.

Once the vehicle completes an acquisition, the warrants can be exercised and will be valid for five years thereafter.

Upon completion of the offering, the founders will hold 24.8% of the company’s capital and voting rights.

Mr Zouari, who is its chief executive officer, participated in the IPO and purchased units worth €18m. In France, Mr Zouari is known for his investment in frozen-food retailer Picard Groupe.

Mr Niel is known for his telecommunications, media, technology, and real estate investments. Mr Pigasse also owns media assets in France such as Les Inrockuptibles magazine, Radio Nova, and music festival Rock en Seine. Both men also own stakes in the group behind the daily Le Monde.