The Daily Dish (4/7/21)
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Grab’s Deal with Altimeter Capital’s blank-cheque vehicle will value technology start-up at $35bn
Grab, south-east Asia’s most valuable start-up, is set for the largest merger between a private business and a blank-cheque vehicle in a deal that will value the SoftBank-backed technology group at about $35bn.
Singapore-based Grab, whose offerings include ride-hailing and financial services, could finalise an agreement to list in New York via one of Altimeter Capital’s $AGC special purpose acquisition companies as soon as this week, according to three people with direct knowledge of the situation.
The merger would be with one of the US investment firm’s two Altimeter Growth Spacs and would come after Grab’s board agreed to a preliminary deal last month.
Grab will raise about $2.5bn through what is called a private investment in public equity, financing that is often raised in conjunction with a Spac deal and that involves selling shares of a public company in a private arrangement with investors.
If Grab’s merger with the Altimeter Spac is approved by the start-up’s board, it will be the biggest such deal globally.
Grab started out as an Uber-like ride-hailing company before expanding into food delivery and financial services including payments, loans and insurance.
Morgan Stanley and JPMorgan are advising Grab on its merger discussions.
New Lamar SPAC Seeks Tech Target
Lamar Advertising Co.’s newly formed SPAC company, called Lamar Partnering Co., has filed with the SEC for an IPO of $300 million, or up to $345 million if the underwriters’ over-allotment is exercised in full.
The SPAC will look for an acquisition target in the out-of-home advertising, technology and communications sectors, such as billboards and related forms of advertising.
Simon’s SPAC does not have a specific target and is instead focused on “Innovative business with the potential to disrupt various aspects of the retail industry and make a transformative impact on in-person and/or online experiences,” according to the company’s SEC filing.
Test Maker LumiraDx to Go Public in $5 Billion SPAC Deal
LumiraDx Ltd., a diagnostic company that produces Covid-19 tests, is going public through a reverse merger with a blank-check company.
The U.K.-based firm will combine with CA Healthcare Acquisition Corp. $CAHC in a deal that values LumiraDx’s equity at $5 billion, the companies said in a statement.
While there is no equity placement attached to the transaction, LumiraDx has secured a $300 million loan from BioPharma Credit Plc and an additional $100 million asset-based revolving credit facility from Capital One Financial Corp., according to the statement.
At $5 billion, LumiraDx’s deal is the largest of the past year by a health-care company with a special purpose acquisition company, or SPAC, according to data compiled by Bloomberg.
Since its founding, LumiraDx has raised $700 million from backers including Morningside Ventures, U.S. Boston Capital Corp. and Petrichor Healthcare Capital Management, as well as from the Gates Foundation and other investors, according to the statement.
The global coronavirus pandemic has accelerated the placement of LumiraDx’s machines in a way that exceeded the company’s expectations, according to Chief Executive Officer Ron Zwanziger.
Broader Focus While LumiraDx expects to see significant growth in demand for its Covid-19 tests as the pandemic persists, the offering is secondary to the company’s broader focus on bringing point-of-care tests to patients, Zwanziger said.