Singapore-based ride-hailing and food delivery company Grab will merge with US-based special purpose acquisition company (SPAC) – Altimeter Growth in a deal that gives the combined entity a valuation of nearly $39.6bn.

The merger will pave the way for Grab to go public with a listing on NASDAQ.

Currently, Grab offers various on-demand services across eight countries – Singapore, Malaysia, Indonesia, the Philippines, Thailand, Myanmar, and Vietnam, and Cambodia. The company, through its superapp, serves 428 cities with ride-hailing, grocery, food, and package delivery services, apart from foraying into mobile payments, and financial services.

Anthony Tan – Group CEO and Co-founder, Grab, said: “It gives us immense pride to represent Southeast Asia in the global public markets. This is a milestone in our journey to open up access for everyone to benefit from the digital economy.

“This is even more critical as our region recovers from COVID-19.

“It was very challenging for us too, but it taught us immensely about the resiliency of our business. Our diversified superapp strategy helped our driver-partners pivot to deliveries, and enabled us to deliver growth while improving profitability.

“As we become a publicly-traded company, we’ll work even harder to create economic empowerment for our communities, because when Southeast Asia succeeds, Grab succeeds.”

Following the merger, Grab will gain cash proceeds of nearly $4.5 billion, of which $4 billion will be through private investment in public equity (PIPE).

Altimeter Growth, which is affiliated with Altimeter Capital Management, has committed to invest $500 million.

The PIPE investors include funds managed by Altimeter Capital Management, T.Rowe Price Associates, funds and accounts managed or advised by BlackRock, Fidelity International, Temasek, Counterpoint Global (Morgan Stanley Investment Management), the Sariaatmadja family, Djarum, and Sinar Mas.

Brad Gerstner – CEO of Altimeter Growth said: “As one of the world’s largest and fastest-growing internet companies, Grab is paving the digital path forward for the 670 million citizens of Southeast Asia. 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.”

The proposed deal has been approved by the boards of directors of both the merging companies. It will be subject to approvals from shareholder and other customary closing conditions, upon which, it is likely to be finalized in the coming months.

  Altimeter Capital, Altimeter Capital Management, Altimeter Growth, Anthony Tan, Brad Gerstner, Grab, Singapore, USA