Grab Holdings, Southeast Asia’s largest ride-healing and food delivery company, on Tuesday agreed to merge with Special Purpose Achievement Company (SPAC) Altimer Growth Corp.
The annexation to One Street’s largest blank-check company deal underscores Wall Street’s insanity as shell companies raise $ 99 billion in the United States this year, after a record $ 8 billion in 2020.
Investors, including Blackrock, Temasek Holdings, Fidelity International and Genus Henderson Investors, have included more than 4 4 billion in private equity in public equity in the Ultimate Capital-backed deal with Singapore-based Grab’s SPAC.
Grab said the decision to become a public entity was driven by strong financial performance last year
“Southeast Asia is one of the fastest growing digital economies in the world, almost double the population of the United States. Yet online penetration, on-demand mobility, and electronic transactions for food supplies are a fraction of what the United States and China do, ”said Brad Garsner, founder and CEO of Alltime Capital, in a statement.
The equity offer is managed by টাই 750 million from funds managed by Altitude Capital.
The জন্য 1.6 billion deal for Grab last year would be a big win for early supporters like Softbank Group Corp. and China’s Didi Chuching. These transactions legitimize Grab’s co-founder Anthony Tan’s strategy of aggressively growing new areas and pumping billions of dollars into his services to localize and invest in a high-growth economy to increase market share.
Reuters previously reported that Grab would announce the deal on Tuesday.
Following the deal, Altimer Growth and Grab will become a wholly-owned subsidiary of a new holding company, which is expected to be valued at 39 399 billion on an initial pro form equity basis.
The transactions will provide Grab with about ৪ 4.4 billion in cash.
“Institutional investors looking for Asian customer internet exposure are keen to diversify their allocations outside of their thousands of companies,” said Varun Mittal, head of fintech business at emerging market consultant EY.
The contracts, approved by the board of both Grab and Altimer Growth, are expected to close in the next few months, subject to shareholder approval.
Grab attracted worldwide attention when it acquired Uber’s Southeast Asia business after five years of costly warfare and joined the company in return.
Reuters reported in January that Grab, which has so far raised about 12 12 billion, was searching a U.S. list.
Grab’s deal would surpass electric vehicle maker Lucid Motors’ চুক্ত 24 billion deal with an ESPAC in February.
With operations in eight countries and 398 cities, GRAB is already the most valuable start in Southeast Asia.
With its ride-hailing business booming in 2012, the firm has moved on to food and grocery supplies, courier services, digital payments, and is now moving toward insurance and nding in an area of 5,050 million people.
The list will give Grab additional firepower in its main market in Indonesia, where local rival Gojek is near the seal of attachment to the country’s top e-commerce business, Tokopedia.
GRAB, whose net income grew 100 percent last year, has yet to turn a profit, but its largest segment – the food delivery business – is likely to break even by 2021, as more customers shift to online catering after COVID. as 19 epidemics.
Cash-rich, U.S.-listed seas are also gaining traction in food and financial services in Indonesia. Both Grubb and C won digital bank licenses in Singapore last year.
Evercoor was Grab’s top financial adviser on the deal and JP Morgan and Morgan Stanley were co-advisers.