Altimeter SPACs increase in reported $ 40 billion deal for Singapore hitchhiking company Grab

Altimeter SPACs increase in reported $ 40 billion deal for Singapore hitchhiking company Grab

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Altimeter SPACs increase in reported $ 40 billion deal for Singapore hitchhiking company Grab
Tan Hooi Ling is a co-founder of Grab and current COO.

S3studio / Getty Images

  • Altimeter Capital is in talks with Grab to go public in a $ 40 billion deal, according to a report by The Wall Street Journal.
  • If the deal is approved, it will mark the largest SPAC deal ever registered, according to the report.
  • Two SPACs affiliated with Altimeter Capital rose up to 20% in Thursday’s trading.
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Two SPACs affiliated with Altimeter Capital increased in Thursday’s negotiations after a report by The Wall Street Journal that said negotiations are underway for Grab to go public through a reverse merger with the blank check company.

Altimeter Growth Corp. and Altimeter Growth Corp. 2 rose by as much as 29% and 16%, respectively, as it is not clear which SPAC is in negotiations to merge with Grab. The Wall Street Journal said negotiations for the deal could fail, and if so, Grab would likely explore a traditional IPO listing on a U.S. stock exchange later this year.

Grab is a transportation, food delivery and financial services company based in Singapore and operates throughout Southeast Asia. The company was founded in 2012 and is supported by Softbank. A possible deal with Altimeter can be valued at up to $ 40 billion, according to the report.

The tie between Grab and Altimeter could happen in the coming weeks and, if so, would mark the largest SPAC deal ever recorded. Grab would raise between $ 3 billion and $ 4 billion in revenue from the potential business.

Altimeter Capital launched its two SPACs in October and January, raising a combined total of $ 850 million between the two blank check vehicles. Altimeter is headquartered in California and has approximately $ 16 billion in assets under management.

SPACs have been in vogue since the beginning of the COVID-19 pandemic, and a $ 40 billion deal between Grab and Altimeter would likely consolidate the alternative IPO route as a valid option once the pandemic subsides. So far this year, 246 SPAC IPOs have raised nearly $ 80 billion in revenue, according to data from SPACInsider.

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