HONG KONG (AP) – South East Asia’s largest floating company Grab Holdings announced on Tuesday that it intends to merge with US-based Altimeter Growth Capital in a $ 40 billion deal in preparation for a preliminary public offer. The United States
It will make it the largest SPAC merger, doubling the current record holder United Wholesale Mortgage’s $ 16 billion in January.
Grab, a special purpose-acquired acquisition company, or SPAC, an IPO listing agreement to raise money through an IPO to acquire another company has already attracted more than $ 4 billion in private equity investments to a group of groups. from: Investors, including Fidelity International և Singapore-based Temasek Holding.
The merged entity is expected to receive about $ 4.5 billion in cash at the time of closing, valued at about $ 39.6 billion, the statement said.
Merger to make Grab the most expensive company in Southeast Asia to list shares in US
Under the deal, Altimeter shares will be subject to a 3-year blocking period, demonstrating its commitment to Grab.
“They join us in the long run, along with an incredible cap of popular institutional investors, sovereign wealth funds,” said Grab CEO Anthony Tan in a statement.
Altimeter co-founder and CEO Brad Gerstner described Grab as one of the world’s fastest growing companies.
“We are pleased that Grab has selected Altimeter Capital Markets as their partner to stand out in the public eye and become even more motivated to become long-term owners of this innovative, mission-driven company,” Gerstner said in a statement.
Over the past year, SPAC mergers have grown in popularity as they allow companies to acquire capital և cheaper և faster than using a conventional IPO process. When SPAC acquires a target, the acquired company takes SPAC’s place on the stock exchange and usually acquires a new share.
The traditional IPO requires the company to hire an investment bank, produce materials in the mountains, so that investors can study in detail, and finally talk to potential investors at road shows before they become public.
Singapore-based Grab, founded by Tan oi co-founder Tan Hooi Ling (without any affiliation) in 2012, started as a swimming company but later expanded to offer other services such as food delivery և food, digital payments և financial. services
In 2019, the company was last valued at more than $ 14 billion after a $ 1.5 billion cash injection from Japan’s SoftBank.
SPAC, Altimeter Growth Capital, is a so-called empty audit firm sponsored by California-based technology-focused investment firm Altimeter Capital Management. According to the application submitted by the SEC, Altimeter Growth Capital was included in August 2020.