fair.png
Tuesday May 18th, 2021 9:30AM

Grab to list in US via $40 bln merger with Altimeter Growth

By The Associated Press
Related Articles
  Contact Editor

HONG KONG (AP) — Southeast Asia’s largest ride-hailing company, Grab Holdings, said Tuesday that it plans to merge with U.S.-based Altimeter Growth Capital in a deal that would value it at nearly $40 billion in preparation for an initial public offering in the U.S.

That would make it the largest SPAC merger ever, more than double current record-holder United Wholesale Mortgage’s $16 billion merger in January.

Grab’s agreement to list via a special purpose acquisition company, or SPAC — a shell company set up with the aim of raising money through an IPO to acquire another company — already has drawn more than $4 billion in private investment in public equity from a group of investors including Fidelity International and Singapore's Temasek Holdings.

At closing, the combined company is expected to receive about $4.5 billion in cash proceeds and will be valued at about $39.6 billion, according to a statement.

The merger will make Grab the most valuable Southeast Asian company to list shares in the U.S.

Under the deal, Altimeter's shares will be subject to a 3-year lock-up period in a show of its commitment to Grab.

“They’re joining our journey for the long-run, together with an incredible day one cap table of renowned institutional investors and sovereign wealth funds,” Grab CEO Anthony Tan said in a statement.

Brad Gerstner, founder and CEO of Altimeter, described Grab as one of the world's largest and fastest-growing companies.

“We are thrilled that Grab selected Altimeter Capital Markets as their partner to go public and even more excited to become sizable long term owners in this innovative, mission driven company,” Gerstner said in a statement.

SPAC mergers have gained popularity over the last year as they allow companies to go public and gain capital more cheaply and more quickly than using a conventional IPO process. When the SPAC acquires a target, the acquired company takes the SPAC’s spot on an exchange and typically gets a new stock ticker.

A traditional IPO requires a company to hire an investment bank, produce mountains of materials for investors to scrutinize, and eventually talk to potential investors in roadshows before they can go public.

Singapore-based Grab, founded by Tan and co-founder Tan Hooi Ling (no relation) in 2012, began as a ride-hailing company but later expanded into offering other services such as deliveries of groceries and take out meals, digital payments and financial services.

The company was last valued at over $14 billion after a $1.5 billion cash injection from Japan’s SoftBank in 2019.

The SPAC company, Altimeter Growth Capital, is a so-called blank-check company sponsored by Altimeter Capital Management, a technology-focused investment firm based in California. According to an SEC filing, Altimeter Growth Capital was incorporated in Aug. 2020.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Industries, AP Business - Financial Services, AP Business - Personal Finance, AP Technology News
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Protest after chief says officer meant to use Taser, not gun
Police clashed with protesters for a second night in the Minneapolis suburb where a police officer fatally shot a Black man in a traffic stop over the weekend
6:36AM ( 19 minutes ago )
Defense Secretary Austin: US adding 500 troops in Germany
Defense Secretary Lloyd Austin says he's expanding the U.S. military presence in Germany by 500 troops, suggesting he will not carry out a Trump administration order to withdraw thousands of them
6:36AM ( 20 minutes ago )
The Latest: German companies must offer weekly virus tests
The German government says companies will need to offer all employees who aren’t working from home at least one coronavirus test each week
6:24AM ( 32 minutes ago )
Associated Press (AP)
Japan to start releasing Fukushima water into sea in 2 years
Japan’s government has decided to start releasing treated radioactive water from the wrecked Fukushima nuclear plant into the Pacific Ocean in two years
5:37AM ( 1 hour ago )
India to approve coronavirus shots green-lit by WHO, others
India says it is approving the use of all coronavirus vaccines that have been given an emergency nod by the World Health Organization or regulators in the United States, Europe, Britain or Japan
5:32AM ( 1 hour ago )
European lawmakers, executives urge US to halve emissions
Dozens of European lawmakers, business executives and union leaders on Tuesday urged the United States to cut its greenhouse gas emissions by 50% in the coming decade compared with 2005 levels
5:18AM ( 1 hour ago )
AP Business
New Mexico governor signs bill to legalize recreational pot
New Mexico Gov. Michelle Lujan Grisham has signed legislation that will legalize recreational marijuana
10:26PM ( 8 hours ago )
Late president's book outlines vision for Japan's Nintendo
Nintendo's late president Satoru Iwata oversaw the video-game maker's global growth, helping make Super Mario and Pokemon household names
8:16PM ( 10 hours ago )
White House grades states' infrastructure as it pushes bill
President Joe Biden wants Congress to know he’s sincere about cutting a deal on infrastructure
5:50PM ( 13 hours ago )
AP Business - Corporate News
Japan to start releasing Fukushima water to sea in 2 years
Japan’s government has decided to start releasing radioactive water from the wrecked Fukushima nuclear plant into the sea in two years after it is treated
9:07PM ( 9 hours ago )
The Latest: 3 Washington counties to tighten pandemic rules
Three of Washington state's 39 counties will tighten up pandemic restrictions beginning Friday
6:07PM ( 12 hours ago )
Lin-Manuel Miranda, mayor open new Times Square vaccine site
“Hamilton” creator Lin-Manuel Miranda joined New York City Mayor Bill de Blasio at the grand opening of a Times Square COVID-19 vaccination site intended to jump-start the city’s entertainment industry
5:50PM ( 13 hours ago )
AP Business - Industries
UK lobbying scandal snares ex-PM Cameron; govt starts probe
The controversy over former British Prime Minister David Cameron’s lobbying on behalf of a now-bankrupt financial services firm has deepened
10:52AM ( 20 hours ago )
US stocks open slightly lower, pulling back from record high
Stocks are opening mostly lower on Wall Street as investors turn cautious following another record-setting run last week
9:45AM ( 21 hours ago )
Huawei, HSBC agree on document deal for extradition case
Chinese telecommunications equipment firm Huawei says it has reached an agreement with HSBC in Hong Kong to obtain documents that its chief financial office Meng Wanzhou hopes will help prevent her extradition to the U.S. Meng, who was detained in Canada in 2018 at the behest of U.S. authorities, has been fighting a legal battle over the last two years as the U.S. seeks to extradite her over bank fraud and allegations that Huawei violated sanctions on Iran
6:18AM ( 1 day ago )
AP Business - Financial Services
The Latest: Tweet recalls queen's loving anniversary speech
The Twitter account of Britain’s royal family has featured a tribute Queen Elizabeth II gave to Prince Philip for the couple’s 50th wedding anniversary
11:43AM ( 2 days ago )
Biden's ambitious expansion of long-term care sparks debate
President Joe Biden has proposed a major expansion of the government’s role in long-term care, but questions are being raised over his use of the low-income Medicaid program and piggybacking the whole idea on an infrastructure bill
12:17PM ( 3 days ago )
Ready to buy a home? The trick is finding or affording one
Homebuyers are facing the most competitive U.S. housing market in decades this spring
3:23AM ( 4 days ago )
AP Business - Personal Finance
Protest after chief says officer meant to use Taser, not gun
Police clashed with protesters for a second night in the Minneapolis suburb where a police officer fatally shot a Black man in a traffic stop over the weekend
6:36AM ( 19 minutes ago )
The Latest: German companies must offer weekly virus tests
The German government says companies will need to offer all employees who aren’t working from home at least one coronavirus test each week
6:24AM ( 32 minutes ago )
India reels amid virus surge, affecting world vaccine supply
India is experiencing its worst pandemic surge, with average daily infections exceeding 143,000 over the past week
6:07AM ( 48 minutes ago )
Trial starts of German far-right group that planned attacks
Twelve Germans have gone on trial accused of involvement with a far-right group that plotted to carry out deadly attacks on Muslims with the aim of stoking civil unrest and overthrowing the government
5:45AM ( 1 hour ago )
Global shares mostly gain as China exports rise
Global shares are mostly higher with hopes growing for a global economic rebound even as coronavirus cases surge in many places
5:44AM ( 1 hour ago )