Grab, Southeast Asia’s Most Valuable Start-Up, Set to Make Biggest Merger Between Private Company and Blank Check Vehicle in Deal That Will Market Supported Tech Group by SoftBank to about $ 35 billion.

According to three people with first-hand knowledge of the situation, Singapore-based Grab, whose offerings include ridesharing and financial services, could finalize a listing deal in New York through one of the acquisition companies at special vocation of Altimeter Capital.

The merger is said to be with one of the US investment firm’s two Altimeter Growth Spacs and comes after Grab’s board of directors agreed to a preliminary deal last month.

The deal was seen as a crucial first test for Southeast Asian unicorns who are prepare to go public this year. Founded in 2012, Grab provides access to a regional consumer market of over 655 million people in countries like Indonesia, Thailand and Vietnam.

Grab will raise around $ 2.5 billion through what’s called a private public equity investment, funding that is often raised in conjunction with a Spac deal and involves selling shares in a state-owned company as part of the scheme. a private agreement with investors.

$ 12 billion

Amount Grab has increased to date

Of this amount, nearly $ 1.2 billion will be financed by Altimeter for a total valuation of nearly $ 35 billion, according to the sources. Altimeter will also support the sale of all Spac shares by public shareholders when the deal is announced, added one of the people familiar with the talks. The figures could still change depending on discussions with investors.

Grab will merge with the Altimeter Growth 1 fund, which raised $ 450 million last year. Its stock price has risen 25% since it was listed, one of the people said.

Grab and Altimeter declined to comment. If Grab’s merger with Altimeter Spac is approved by the startup’s board of directors, it will be the largest such transaction in the world. People familiar with the situation have warned that the deal has not been finalized.

Altimeter, a Silicon Valley-based company that manages more than $ 15 billion in public and private technology investments, is known for supporting companies as they enter their public debut.

The company, which has raised a total of $ 850 million for two Spacs, has been a player in Pipe investments that have raised additional capital for blank check targets, including deals for the UK cars site second hand Cazoo and online lender SoFi.

After investing in Snowflake in 2015, Altimeter’s 15.1% stake in the data analytics firm was worth nearly $ 4.4 billion when it listed in New York Last year.

So far, unprofitable Grab has raised $ 12 billion and has $ 5 billion in cash reserves, bringing its private valuation to more than $ 16 billion.

The Vision Fund of SoftBank, one of Grab’s main investors, is expected to be a big winner from the deal. Anthony Tan, the founder of Grab, will own around 2% of the listed entity, according to two people close to the company.

Grab’s revenue increased 70% in 2020 from 2019, the company said in a January update. The company added that its ridesharing business is breaking even in all of its operating markets.

Grab’s list “is particularly noteworthy because the deal does not come from the United States – it is coming from asia and moreover, from Southeast Asia, a region totally under-represented in the US stock markets, ”said one banker, who asked to remain anonymous.

This year is expected to be a banner year for fundraising by Asian tech and internet companies. Other Southeast Asian unicorns planning to go public include Indonesia-based Gojek, Grab’s main rival, who is in talks to merge with e-commerce company Tokopedia before an announcement.

Grab started as an Uber-style rideshare company before enlarging in food delivery and financial services, including payments, loans and insurance. He was granted a digital banking license in Singapore.

Morgan Stanley and JPMorgan are advising Grab in its merger discussions.

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