News: Southeast Asia’s Grab in talks for U.S. listing via $40 billion SPAC deal: sources.
(Reuters) – Southeast Asia’s largest hailship and grocery delivery company, Grab Holdings, is in talks to go public through a merger with a U.S. acquisition company that could be valued at nearly $ 40 billion.
A deal, if confirmed, would be the largest blank check transaction of all time.
Two sources said Friday that Grab was in talks with Silicon Valley-based technology-focused investment firm Altimeter Capital Management, but also had talks with other so-called Special Purpose Acquisition Companies (SPACs).
Altimeter has supported two SPACs – Altimeter Growth Corp and Altimeter Growth Corp 2.
Sources said Singapore-based Grab, which has rapidly grown to become Southeast Asia’s most valuable startup valued at more than $ 16 billion since it began as a hail-fighting firm in 2012, has not closed a deal.
Reuters first reported in January, citing sources, that Grab was reviewing a US listing and that the IPO could bring in at least $ 2 billion.
A traditional listing, which Grab had hired Wall Street banks on earlier this year, is still possible, said sources, who refused to be identified because they were not authorized to speak to the media.
Altimeter did not immediately respond to a Reuters request for comment, while Grab declined to comment.
SPACs, publicly traded Shell companies that raise money through IPOS and partner with companies by seducing them with shorter listing periods, have been Wall Street favorites since last year. Such structures reached a record $ 82 billion last year, and the trend accelerated in 2021.
Other big SPAC deals in recent times include the merger of UMW Holdings Corp. with a blank check company backed by billionaire Alec Gores, valued at $ 16 billion and the $ 24 billion deal, The Luxury -Electric vehicle maker Lucid Motors concluded with a Michael Klein-sponsored SPAC.
Grab is backed by many global investors, including SoftBank Group Corp and Mitsubishi UFJ Financial Group.
The Wall Street Journal reported Thursday that Grab was in talks with Altimeter. It was not specified which SPAC’s grave was interviewed by Alitmeter.
Grab is expected to raise between $ 3 billion and $ 4 billion from private investors as part of the SPAC merger (bit.ly/3rD4XR6).
Additional coverage from Sohini Podder in Bengaluru; Adaptation by Shinjini Ganguli, Shounak Dasgupta and Michael Perry
Original Source © Reuters