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SPAC Deal: Altimeter Growth (AGC) Taking Grab Public in $40b SPAC Merger

Brad Gerstner's Altimeter Growth (AGC) is taking Grab, the leading superapp for deliveries, mobility and financial Services in Southeast Asia public via a $40b SPAC merger.

It's been a rumor for a little while now and today we have it -- Brad Gerstner's Altimeter Growth is taking Grab public in a deal valued at $30.36B ($40B equity value). It's a big PIPE at $4.04B (priced at $10) led by Altimeter @ $750M, which could spike up to $1.2B  if all SPAC shareholders redeem before the merger. Blackrock, Fidelity, T. Rowe Price, Janus Henderson, Bubadala, Nuveen, Permodalan Nasional Berhad and Temasek also participated in the PIPE. 

Investors will like this deal for a lot of reasons, but one for sure will be that the Altimeter team has agreed to a 3-year lock-up period for its sponsor promote shares. This is in direct response to the pitchforks that have come out regarding SPAC sponsors and their ability to do a quick exit and therefore a feeling that they don't care about the de-SPAC performance.

Further 10% of that locked up sponsor promote will go to GrabForGood to support programs with social and environmental impact which is a little nugget for retail and ESG investors looking to do good and feel good beyond just making returns.

For full details investors will want to check out the full investor deck here.

A Southeast Asia SuperApp at Scale

Part of the excitement about the Altimeter (AGC) / Grab deal is that Grab is Southeast Asia's #1 Superapp. Effectively Grab has an ability to be seamlessly integrated across an individual's day whether it is for food deliveries, transport, digital wallet or other needs.

 Grab is Southeast Asia's top SuperApp

 Grab is Southeast Asia's top SuperApp

And, beyond being just available to be integrated, Grab is making it happen at scale with massive numbers across key metrics:

Grab operating at a massive scale

Grab operating at a massive scale

Take away

Investors will have a right to be excited about the Altimeter (AGC) and Grab deal. It is the largest SPAC deal ever (twice the size of the United Wholesale Mortgages deal), Grab's app is integrated throughout a person's daily lives, and it is already operating at a massive scale.

AGC initial was up over 10% on the news of the Grab merger, but has since come down some. However, given that it closed yesterday at $13.95 (well about NAV) based on the long held rumors, some of the deal pop will already have been baked in. Investors will want to consider this one carefully in terms of timing as we've recently seen the air continue to leak out of a lot of deals in the days after the merger announcement and yesterday we saw those SPACs take it on the chin.

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