Global Market: Grab executives buy over $30 million in shares after stock slump
Grab Holdings executives purchased over $30 million in shares to boost investor confidence following a 50% stock decline. The sell-off occurred after Grab announced plans to acquire buy-now-pay-later provider Atome Financial in a deal valuing it u...
By Anupam Nagar, ETMarkets.com |
Agencies
Grab execs buy $30m shares after stock slump following deal
Top executives of Grab Holdings bought more than $30 million worth of the Singapore-based ride-hailing and financial services company's shares this week after the stock fell to a more than three-year low following its agreement to acquire buy-now-pay-later provider Atome Financial, Reuters reported.
Grab shares have tumbled about 50% over the past year, falling to $2.74 on Friday, their lowest level since May 2023, according to Reuters.
The decline came days after Grab announced plans to acquire Atome Financial in a deal that could ultimately value the buy-now-pay-later provider at up to $4.5 billion. Grab also unveiled plans to repurchase about $900 million worth of its shares over the next 12 months.
Read more: Global Market: Yuan slips as PBOC signals caution on currency appreciation
The announcements on September 15 failed to lift the stock initially, with investors weighing the size of the Atome transaction and its potential impact on Grab's finances.
According to filings with the US Securities and Exchange Commission cited by Reuters, Grab CEO Anthony Tan purchased $30 million worth of shares on Monday. President Alex Hungate also bought shares worth about $867,000.
Grab shares subsequently closed 8.9% higher on Tuesday, Reuters reported.
The purchases came as Grab seeks to reassure investors about its strategy following the Atome deal. At a company townhall on Tuesday, Tan indicated that his personal investment reflected his confidence in the company's strategic direction.
The Atome acquisition would expand Grab's financial services business and strengthen its presence in consumer lending, while the planned share buyback provides additional support for shareholders after the recent sell-off.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Grab shares have tumbled about 50% over the past year, falling to $2.74 on Friday, their lowest level since May 2023, according to Reuters.
The decline came days after Grab announced plans to acquire Atome Financial in a deal that could ultimately value the buy-now-pay-later provider at up to $4.5 billion. Grab also unveiled plans to repurchase about $900 million worth of its shares over the next 12 months.
Read more: Global Market: Yuan slips as PBOC signals caution on currency appreciation
The announcements on September 15 failed to lift the stock initially, with investors weighing the size of the Atome transaction and its potential impact on Grab's finances.
According to filings with the US Securities and Exchange Commission cited by Reuters, Grab CEO Anthony Tan purchased $30 million worth of shares on Monday. President Alex Hungate also bought shares worth about $867,000.
ADVERTISEMENT
Read more: Global Market: South Korean stocks pare gains as investors turn cautious ahead of Chuseok breakGrab shares subsequently closed 8.9% higher on Tuesday, Reuters reported.
The purchases came as Grab seeks to reassure investors about its strategy following the Atome deal. At a company townhall on Tuesday, Tan indicated that his personal investment reflected his confidence in the company's strategic direction.
The Atome acquisition would expand Grab's financial services business and strengthen its presence in consumer lending, while the planned share buyback provides additional support for shareholders after the recent sell-off.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
