Former Grab VN employees ‘disappointed’ with SPAC-related snag

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Hello readers,

I’m not one for employee stock ownership plans (ESOPs). I understand how they work and why they’re a thing, but they’re not something I’d go for personally. I’m at the point in my life where I’d rather have cold hard cash in my bank account instead of shares that could be worth something more in the years ahead.

However, there are plenty of folks who go for ESOPs because the potential of cashing out and getting great returns can be pretty exciting. Current and former employees at Grab, for example, are looking forward to reaping the rewards for their faith in the super app as it gears up for its public listing. But its ex-staff in Vietnam have encountered an unexpected turn of events.

Today we look at,

• Why Grab is asking former employees in Vietnam to give up their shares
• This Vietnamese startup that wants to make home ownership easier
• Other newsy highlights such as Alibaba’s Singles Day sales slowdown and Shopee’s new TikTok-esque feature

Premium summary

A question of selling

Image credit: Timmy Loen

Southeast Asian super app Grab is gearing up for its initial public offering later this year. Current and former employees are anticipating a windfall from the listing, but to the surprise of Grab’s ex-employees in Vietnam, they have been asked to give up their shares in exchange for a payout pegged to the firm’s current valuation.

Grab is going public via a deal with a SPAC (special purpose acquisition company). What this means is that the trading entity that will be listed on the Nasdaq will be a new one, distinct from Grab’s existing Singapore-based holding entity – which is where the problem comes in.

• A matter of legislation: According to former staffers, Grab said that converting their original shares to come under the new entity would violate Vietnam’s regulations, which only allows current Vietnamese employees to own shares of the foreign companies that employ them. These existing shares could be “technically worthless” when Grab starts trading on the public market.

• There’s some unhappiness: A number of ex-employees have expressed their disappointment over the matter. One said that they were asked to give up their shares right away and felt that they ought to have been informed of the situation way ahead of time. Others are unhappy at the price that Grab is giving for their shares, which they feel could be worth more.

• Doing their best: Grab told Tech in Asia that the majority of those who were given the offer have accepted the offer and “expressed their continued support” for the company. Grab also believes that the deal is the “fairest arrangement to ensure compliance with Vietnam’s law while being honorable to” its employees.

Read more: Grab Vietnam ex-staffers ‘disappointed’ over offer to give up shares

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