Dan Och’s blank check company Ajax (NYSE: AJAX) has been one of the hot SPACs (special purpose acquisition companies) to watch ever since the SPAC craze took off in 2020. SPACs are shell companies that launch with the intent of merging with a private company and taking it public. They typically have two years to make a deal or must return the initial money raised to investors. Och, a billionaire investor and former hedge fund manager, has made a name for himself in the investing community, which is why his SPAC has gotten so much attention.
Ajax recently announced that it plans to take the British online used car company Cazoo public at a $7 billion valuation, much to the displeasure of many investors. Given Och’s notoriety, I believe many were disappointed to see him select a used car company. That said, all may not be lost. Let’s take a look at Cazoo and see if Och is seeing something that the market is missing.