Assalam-u-alaikum
In a question asked on Islamicly app regarding spacs having only cash/liquid assets and selling it for profit before merger/acquisition being impermissible, Islamicly replied a spac does not have only cash assets and it has other assets too like staff, separate legal entity and goodwill. So it is permissible to trade its shares before merger /acquisition and is not considered equivalent to owning and trading cash.
Is this point of view correct according to you as i have read assets other than cash are mandatory for a company to have to trade it’s shares!
JazakALLAH
Wa alaykum salaam,
To trade a company with profit, the underlying assets cannot be 100% cash.
can we consider staff and goodwill of owners as non-cash and trade such company with profit?
Shariah board of Islamicly think so. I wanted your opinion.
Wa alaykum salaam, staff are not owned by the company. They serve the company.
The Shariah board of Islamicly are a highly reputable and esteemed Shariah board. You may follow their screening and ruling on a SPAC.
jazakALLAH for the guidance
Salma ALykum,
please you mentioned you have to buy it at bar, does that mean it should be exact money per share like 10$ but what if it is higher lets say 12$ and I bought it and then did not sell untill the company is public is it still Haram?
I am talking about buying SPAC share at 2$ more its original price and selling it only after company go public, assuming company is halal type of business
Thanks
Ahmed
Assalam-u-alaikum
If a spac got assets other than cash/liquid assets, and it has agreed a merger with another company(lets say medicine or any shariah compliant field) but merger has not taken place yet. So what about gains by trading shares of such spac? as its still pre-merger and share prices fluctuate only based on news about the company it is merging with and not based on actual business of that company.
Should one wait for actual merger to happen?
