The decacorn start-up is in talks with a special purpose acquisition company operated by Altimeter Capital Management

Grab is contemplating a merger with a New York-listed special purpose acquisition company (SPAC). The investment vehicle is operated by investment firm Altimeter Capital Management. The deal could value the company at about $35 billion, Financial Times has reported.

Headquartered in Singapore, Grab offers a range of services. It entered the market in 2012 with a ride-hailing business, followed by digital payments offering, which debuted in 2016. Grab launched the food delivery app two years later.

A public debut from Grab offers investors access to a regional consumer market of more than 655 million people – the company operates in various Asian countries, including Indonesia, Thailand and Vietnam.

If the SPAC merger goes ahead, Grab would simultaneously raise at least $2.5 billion through a private investment in public equity (PIPE) transaction. The deal would make the potential merger the largest SPAC deal on record.

The proposed deal could complete as soon as this week, according to sources closer to the companies.

Altimeter has established two SPACs. Altimeter Growth Corp I raised $450 million when it listed last year, and this is the vehicle that has been identified as the most likely candidate for the deal with Grab.

Grab is yet to make a profit. In January, the company reported a 70% increase in revenue last year compared with 2019.

The company has raised $12 billion over 33 funding rounds and it is currently valued at more than $16 billion.

Morgan Stanley and JPMorgan are advising Grab on the merger transaction.

Date published: 8 April 2021

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