Grab (US:GRAB) Zhi Tong Cai Jing·2025-06-10 06:38Group 1 - Grab Holdings plans to issue $1.25 billion in convertible bonds, raising speculation about a potential acquisition of competitor GoTo Group, a major player in Southeast Asia's delivery and transportation sector [1] - GoTo's stock price rose by 6.6% on the Jakarta stock exchange following Grab's announcement, indicating market optimism regarding a possible merger [1] - Despite Grab's separate statement denying current acquisition negotiations with GoTo, the bond issuance has sparked positive sentiment about the merger prospects between the two dominant ride-hailing and food delivery companies in the region [1] Group 2 - The convertible bonds will have a coupon rate of 0% to 0.5% per annum, with a conversion premium of approximately 35% to 40% over Grab's closing price on Tuesday [1] - Grab also plans to repurchase some of its shares, with $274 million remaining in its buyback program as of the end of March, which may help investors hedge their positions [2] - Analysts express mixed views on the transaction, with some suggesting it may attract convertible bond traders, while others question the rationale behind increasing capital costs without a strategic acquisition [2]