Southeast Asia’s ride-hailing and food delivery company, Grab, is set to announce a merger with U.S.-based Altimeter as early as Tuesday in what will be the biggest blank-check company deal ever.
That’s according to three Reuters sources that say Singapore-based Grab will be valued at nearly $40 billion in preparation for a public offering.
Grab’s agreement includes a $4 billion private investment in public equity from global investors like Fidelity International and Janus Henderson, the sources said.
Grab declined to comment and Silicon Valley-based Altimeter did not respond to a request for comment.
The deal is a big win for the company’s early backers in Japan and China and a U.S. listing will give Grab extra value in its main market in Indonesia, over its local rival Gojek.
Grab has yet to turn profitable, but it expects the food delivery business to break even by the end of the year, as consumers shift to online food delivery.
With operations in eight countries and hundreds of cities, Grab is already Southeast Asia's most valuable start-up.