SOURCES reveal that Grab Holdings Inc is in talks to go public through a merger with a special purpose acquisition company that could value the ride-hailing giant at nearly US$40 bil, making it the largest ever blank-check deal.
The merger with Altimeter Capital Management LP is expected to raise Grab between US$3 bil and US$4 bil from private investors.
Reuters first reported in January, citing sources, that Singapore-based Grab was exploring a listing in the United States.
Silicon Valley-based venture capital firm Altimeter has backed two special purpose acquisition companies (SPACs) – Altimeter Growth Corp and Altimeter Growth Corp 2. The WSJ report did not specify which of the two SPACs Grab was in talks with.
SPACs are shell companies that raise funds through an initial public offering to take a private company public.
Other recent large SPAC deals include UMW Holdings Corp’s US$16-bil merger with a blank-check firm backed by billionaire Alec Gores, and the US$24-bil deal that luxury electric vehicle maker Lucid Motors struck with a Michael Klein-backed SPAC.
Altimeter did not immediately respond to a Reuters request for comment, while Grab could not be reached for comment outside regular business hours. – Mar 12, 2021