Grab agrees to US$40 billion merger, clearing way to list in the US
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Southeast Asia’s biggest ride-hailing and food delivery firm Grab Holdings agreed a merger on Tuesday with US-based Altimeter Growth Corp in a deal that values Grab at an initial proforma equity value of about US$39.6 billion and will lead to a public 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 US so far this year after a record $83 billion fundraising in 2020.
Singapore-based Grab’s agreement with a special purpose acquisition company backed by Altimeter Capital includes a more than $4 billion private investment in public equity by investors including BlackRock, Fidelity International, Janus Henderson Investors and Temasek Holdings.
Grab said its decision to become a public company was driven by strong financial performance in 2020, despite the pandemic.
Reuters earlier reported that Grab would announce the deal on Tuesday.
Questions & Answers
Q.What is Grab's initial valuation following the merger agreement?
What is Grab's initial valuation following the merger agreement?
The merger deal values Grab at an initial proforma equity value of approximately US$39.6 billion. This agreement clears the path for Grab, a major ride-hailing and food delivery firm, to list publicly in the US.
Q.Which type of company is Altimeter Growth Corp?
Which type of company is Altimeter Growth Corp?
Altimeter Growth Corp is a US-based special purpose acquisition company, often referred to as a blank-check company. Grab's merger with this firm represents the largest such deal ever recorded in the market.
Q.Why did Grab decide to become a public company?
Why did Grab decide to become a public company?
Grab's decision to go public was influenced by its strong financial performance throughout 2020, even amidst the global pandemic. The company saw this as an opportune moment for its US listing.
Q.Which investors are part of the private investment in public equity?
Which investors are part of the private investment in public equity?
Investors including BlackRock, Fidelity International, Janus Henderson Investors, and Temasek Holdings are contributing to the private investment in public equity. This investment amounts to more than US$4 billion.
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