{"id":111928,"date":"2021-04-13T06:38:53","date_gmt":"2021-04-13T06:38:53","guid":{"rendered":"https:\/\/fin2me.com\/?p=111928"},"modified":"2021-04-13T06:38:53","modified_gmt":"2021-04-13T06:38:53","slug":"grab-set-to-announce-deal-with-u-s-spac-at-40-billion-valuation-sources","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/grab-set-to-announce-deal-with-u-s-spac-at-40-billion-valuation-sources\/","title":{"rendered":"Grab set to announce deal with U.S. SPAC at $40 billion valuation – sources"},"content":{"rendered":"
SINGAPORE (Reuters) -Southeast Asia\u2019s largest ride-hailing and food delivery firm Grab Holdings is set to announce as early as Tuesday a merger with U.S.-based Altimeter that will value Grab at nearly $40 billion and lead to a public listing, three people told Reuters.<\/p> The merger will make it the biggest blank-check company deal ever.<\/p>\n Grab\u2019s agreement with a special purpose acquisition company (SPAC) backed by Altimeter Capital includes a $4 billion private investment in public equity (PIPE) from a group of Asian and global investors including Fidelity International and Janus Henderson, the sources said.<\/p>\n Grab declined to comment. There was no response from Silicon Valley-based Altimeter to an emailed request for comment.<\/p>\n The two fund managers also did not respond to an emailed query. The sources declined to be identified due to the sensitivity of the matter.<\/p>\n The deal for Singapore-based Grab, which sources have previously said was valued at just over $16 billion last year, is a big win for its early backers such as Japan\u2019s SoftBank Group Corp and China\u2019s Didi Chuxing.<\/p>\n A U.S. listing will give Grab extra firepower in its main market, Indonesia, where local rival Gojek is close to sealing a merger with the country\u2019s leading e-commerce business Tokopedia.<\/p>\n Grab, whose net revenue surged 70% last year, is yet to turn profitable, but it expects its biggest segment – the food delivery business – to break even by end-2021, as more consumers shift to online food delivery after the COVID-19 pandemic.<\/p>\n The nearly $40 billion valuation is based on a proforma equity value, two of the sources said.<\/p>\n With operations in eight countries and 398 cities, Grab is already Southeast Asia\u2019s most valuable start-up.<\/p>\n Leveraging its ride-hailing business started in 2012, the firm has expanded into offering food and grocery deliveries, courier services, digital payments, and is now making a big push into insurance and lending in a region of 650 million people.<\/p>\n Cash-rich, U.S.-listed Sea is also muscling into food delivery and financial services in Indonesia. Both Grab and Sea won digital bank licences in Singapore last year.<\/p>\n