Singapore's Grab Eyes $2 Billion Loan To Finance $7 Billion GoTo Deal
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Zinger Key Points
  • Grab explores $2B loan to fund possible $7B takeover of Indonesian rival GoTo, boosting Southeast Asia dominance.
  • Backed by Uber, Grab beat Q4 estimates and partners with global firms to test autonomous tech in delivery services.

On Wednesday, Uber Technologies, Inc UBER Singaporean rival Grab Holdings GRAB discussed raising a loan of up to $2 billion to back its potential takeover of Indonesian rival GoTo Group.

The bridge loan could have a tenor of about 12 months, Bloomberg reported, citing unnamed sources familiar with the matter.

GoTo offers mobility and food delivery services.

Also Read: Alibaba, Grab, Tencent, Meituan Gear Up For Growth As China Bets On Services To Revive Economy

Grab is moving ahead with due diligence and is in talks about the structure of a deal that could fetch over $7 billion. It’s also eyeing a bond or equity takeout after the firm bags the bridge loan.

Autonomous Vehicles: Grab collaborated with four autonomous technology companies from China, the U.S., and South Korea to explore self-driving solutions across Southeast Asia. The partner companies included China's WeRide Inc WRD and Zelos, Boston's Motional, and South Korea's Autonomous A2Z.

Grab reported fourth-quarter fiscal 2024 revenue growth of 17% to $764.00 million, beating the consensus of $757.61 million. EPS of 1 cent beat the consensus loss of 1 cent.

Grab projects revenue between $3.33 billion and $3.4 billion compared to a consensus of $3.398 billion, signifying caution around a Southeast Asian ride-hailing and food delivery market. 

Grab went public in 2020 after merging with a special purpose acquisition company (SPAC). The company’s valuation is roughly $18.3 billion.

Price Action: GRAB stock is up 1.76% at $4.62 premarket at the last check on Wednesday.

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Image: Shutterstock

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