SINGAPORE (Reuters) – South Asia’s largest business and food delivery firm Grab Holdings will announce on Tuesday a merger with the US Altimeter that will value Grab nearly $ 40 billion and lead to a public listing, four people told Reuters .
The merger, which will be the largest empty check transaction to date, highlights the frenzy on Wall Street as shell companies raised $ 99 billion in the United States so far this year after a record $ 83 billion fundraiser in 2020.
The Grab agreement with a special acquisition venture (SPAC), backed by Altimeter Capital, includes a $ 4 billion private equity investment (PIPE) from a group of Asian and global investors, including Fidelity International and Janus Henderson, said the sources.
Grab declined to comment on the SPAC agreement.
There was no response from the Altimeter, Fidelity and Janus Henderson, based in Silicon Valley to email requests for comment.
Due to the sensitivity of the case, the sources do not want to be identified.
The deal for Grab, valued at just over $ 16 billion last year, will deliver a big win for its early supporters such as SoftBank Group Corp and the Didi Chuxing in China.
Last year, Mitsubishi UFJ Financial Group Inc and IT services firm TIS Inc invested $ 856 million in Grab as it expanded into financial services.
The bumper valuation confirms Grab co-founder Anthony Tan’s strategy to aggressively leverage growth in new sectors and increase market share by pumping billions of dollars to locate its services and invest in high-growth economies.
“Institutional investors looking for Asian exposure to Internet consumers want to spread their award beyond just a handful of companies,” said Varun Mittal, head of emerging markets’ finery industry at EY.
Grab attracted worldwide attention in 2018 when he acquired Uber’s business in Southeast Asia after a long five-year battle and in return took an interest in the company.
Reuters reported in January that Grab, which has raised about $ 12 billion so far, is investigating a U.S. listing. [L1N2JT0HC]
Grab’s agreed deal will surpass Lucid Motors’ $ 24 billion deal concluded with a SPAC in February. [L4N2KS4YJ]
BATTLEGROUND INDONESIA
With operations in eight countries and 398 cities, Grab is already the most valuable venture in Southeast Asia.
The business, which started in 2012, started delivering food and groceries, courier services, digital payments and is now engaged in insurance and loans in a region of 650 million people.
The listing gives Grab extra strength in its main market, Indonesia, where local rival Gojek is close to a merger with the country’s leading e-commerce company Tokopedia.
Grab, whose net income increased by 70% last year, will still be profitable, but it expects its largest segment – the food delivery industry – to level off by the end of 2021, as more consumers switch to COVID-19 after delivering food . pandemic.
Cash-rich, U.S.-listed Sea also boasts food delivery and financial services in Indonesia. Both Grab and Sea won digital banking licenses in Singapore last year.
Reporting by Anshuman Daga; Edited by Muralikumar Anantharaman and Mike Harrison