Thursday, April 15, 2021

Malaysia launched Grab to go public in world's biggest US$40bil SPAC merger

 


SINGAPORE: Grab Holdings, the largest ride-hailing and food delivery firm in Southeast Asia, clinched a merger on Tuesday with special-purpose acquisition company Altimeter Growth Corp securing a valuation of nearly US$40 billion and paving the way for a coveted U.S. listing.

The merger, the biggest blank-check company deal ever, underscores the frenzy on Wall Street as shell firms have raised $99 billion in the United States so far this year after a record $83 billion in 2020.

As part of Singapore-based Grab's agreement with the SPAC backed by Altimeter Capital, investors such as Temasek Holdings, BlackRock, Fidelity International, Abu Dhabi's Mubadala and Malaysia's Permodalan Nasional Bhd will participate in a $4 billion private investment in public equity offering.

Funds managed by Altimeter Capital will lead the investment with $750 million.

"Institutional investors looking for Asian consumer internet exposure are keen to diversify their allocation beyond a handful of companies," said Varun Mittal, head of emerging markets fintech business at consultancy EY.

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