Grab settles with ex-staffers in Vietnam as shares drop

Grab says that it has reached a settlement with most ex-staffers in Vietnam following a dispute over their shares in the company.

Tech in Asia previously reported that Grab told affected ex-employees in the country that their original shares could be “technically worthless” because they were issued by Grab Holdings Inc (GHI) and not Grab Holdings Limited (GHL), the trading entity on US-based Nasdaq.

Grab officially listed on New York-based Nasdaq on December 2. / Photo credit: Grab

The former employees were then asked to give up their shares in exchange for a payout pegged to Grab’s valuation, which was close to US$40 billion when the SPAC deal was announced.

Since its stock market debut, the price of Grab shares has dropped by around 30% to US$7 and could further decrease as more stocks flood the market, as shown in this Tech in Asia analysis. Grab’s market value now stands at around US$27 billion.

In contrast, the company’s compensation offer for the ex-staffers stood at around US$10 per GHL share, which is equivalent to US$13 per GHI share.

According to Grab, the move was aimed at complying with Vietnam’s regulations, which do not allow former employees to own shares of a foreign entity.

About a dozen former employees did not accept the offer before the December 2 public listing in the hopes that the shares would perform well.

Tech in Asia understands that Grab is working to register an updated employee stock ownership plan program with the State Bank of Vietnam (SBV).

“For existing Grab Vietnam’s employees who may choose to leave the company before the registration process with SBV is completed, Grab intends to offer a one-time cash payment for the rewards they earned previously,” the Singapore-based super app said in a statement.