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‘Grab looks to sell off assets’
Posted on Thursday, 09 May 2019 09:35
Singaporean ride-hailing company GrabTaxi Holdings has hired banks to find potential investors to take a minority stake in its financial services business, two people close to the situation told Reuters.

The Financial Times (FT) stated that the start-up is also looking to spin off its payments division to increase its growth within the competitive south-east Asian market.

Potential suitors include banks and insurance companies, one of Reuters’ sources stated, before cautioning that discussions were still at an early stage.

The insider, who requested anonymity as he was not permitted to speak to the media, said Grab was hoping to sell the two assets for less than USD 500.00 million.

However, the company might raise capital for the businesses through separate transactions, before spinning one, or both, off sometime in the near future, executives and investors of Grab told FT.

Based in Singapore, the ride-hailing business provides transportation via car rentals, taxis and coaches through its mobile application, as well as food delivery and digital payments services.

Grab has been rapidly growing since it was established in 2012; it now comprises 5,000 employees and has become the most financed start-up in Southeast Asia.

In March, it secured a USD 1.46 billion investment from SoftBank Vision Fund through a funding round.

At the time, the company said it was going to use the proceeds to finance its super app in Southeast Asia in a bid to expand its services and allow greater accessibility for customers.

According to the FT, potential stumbling blocks for the sale of Grab’s businesses come in the form of regulators, who prefer local financial data to remain under their jurisdiction.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 1,253 deals targeting software publishers announced worldwide since the beginning of 2019.

By far and away the largest of these involved a consortium led by Hellman & Friedman agreeing to acquire US-based Ultimate Software Group for USD 11.00 billion.

Other targets include Luxoft Holding, Infor, Bigo and NGINX.

© Zephus Ltd