SINGAPORE: Singapore-based ride-hailing and delivery company Grab Holdings is reportedly in talks to secure up to US$2 billion (S$2.68 billion) in loans to support its possible takeover of Indonesia’s GoTo Group, according to sources familiar with the matter.
The Edge Singapore reported that the bridge loan could have a 12-month term. Sources said discussions with banks are still in the early stages, and the terms could change as negotiations continue. GoTo and Grab have yet to comment on the matter.
Grab’s move comes as dealmaking activity picks up in Asia, with valuations becoming more attractive and investors looking for opportunities. This has led to a strong M&A financing pipeline, which is expected to boost the region’s loan market as it recovers in 2025 after three years of decline.
Just recently, the South China Morning Post reported that AI advances have sparked a wave of record-breaking loans for data centres in Asia.
According to The Edge Singapore, Blackstone is working with Citigroup to raise at least US$200 million to fund its purchase of South City Mall in Kolkata, India. Meanwhile, Advent International is seeking about US$300 million to acquire Ginko International’s China operations, which specialise in contact lenses.
This signals that Grab is pushing ahead with its plans to acquire GoTo after a period of delay. If successful, the acquisition could be one of Southeast Asia’s biggest tech deals in recent years.
Backed by Uber Technologies Inc, Grab is conducting due diligence and discussing the structure of a deal that could be over US$7 billion, Bloomberg reported last week.
One of the sources also said Grab is considering issuing bonds or equity after securing the bridge loan. However, the deal still depends on the successful acquisition of GoTo, they added. /TISG
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