PAII: Sakuu Corporation to acquire Pyrophyte Acquisition Corp. II in $620M reverse merger

Pyrophyte Acquisition Corp. II (NYSE: PAII) announced on 15 October 2026 that it has entered into a definitive Business Combination Agreement with Sakuu Corporation. The deal is structured as a reverse merger valued at approximately $620 million, with Sakuu as the acquiring party and PAII as the target.

In a reverse merger, a private company effectively goes public by combining with an existing listed vehicle. PAII shareholders would see their stake roll into the combined entity. Short interest in PAII is negligible at well under 0.01% of free float, so the short side is not a meaningful factor here. Cost to borrow stands at 19.3%, relatively elevated for such a small short position, but with only 832 shares reported short the practical impact is minimal.