Starry Sea Acquisition signs LOI with Chinese healthcare firm

NEW YORK - Starry Sea Acquisition Corp. (NASDAQ:SSEA) announced Monday it has signed a binding letter of intent for a proposed business combination with Forever Young International Limited, a Chinese company providing management and support services to medical institutions. SSEA shares have shown strong momentum, gaining over 25% in the past year and currently trading at $568.73, near its 52-week high of $574.21. InvestingPro subscribers can access detailed SPAC analysis tools and valuation metrics to evaluate merger opportunities.

The proposed transaction values Forever Young at approximately $750 million to $900 million, according to the press release statement. The consideration is expected to consist of rollover equity to Forever Young’s shareholders in the form of ordinary shares valued at $10 per share in the post-closing publicly-listed entity. With SSEA showing a robust YTD return of 15.25% and maintaining strong trading volume averaging 62 billion shares over the past three months, market interest in this SPAC remains high.

The parties have agreed to a 60-day period of mutual exclusivity, which may be extended under certain conditions specified in the letter of intent. Both companies have committed to use reasonable best efforts to negotiate and execute a definitive agreement as soon as practicable.

Forever Young provides management and support services to medical institutions in China with a mission to support these institutions and contribute to the standardization and quality of China’s primary healthcare services.

Starry Sea Acquisition Corp. is a special purpose acquisition company (SPAC) incorporated in the Cayman Islands that was formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination.

The transaction remains subject to confirmatory due diligence by both parties. If a definitive agreement is reached, SSEA will prepare a proxy statement to be filed with the Securities and Exchange Commission and mailed to its stockholders.

SSEA is being represented by Torres & Zheng at Law, P.C. and Beijing Dacheng Law Offices for legal matters, while Forever Young is being represented by Loeb & Loeb LLP, CM Law, and Harney Westwood & Riegels.

In other recent news, Starry Sea Acquisition Corp completed its initial public offering on Nasdaq, raising gross proceeds of $57.5 million. The company offered 5,750,000 units at $10.00 per unit, with each unit comprising one ordinary share and one right to receive one-sixth of an ordinary share upon the completion of an initial business combination. These units are now trading under the symbol SSEAU, with ordinary shares and rights listed separately as SSEA and SSEAR, respectively. Meanwhile, Morgan Stanley has reported an improvement in China A-share investor sentiment. The weighted Market Sentiment Indicator (MSASI) increased by 7 percentage points to 78%, and the simple MSASI rose by 8 percentage points to 65%. These developments reflect recent shifts in market dynamics and investor confidence.

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