Bridgetown SPAC Considering $10 Billion Indonesian Tokopedia Deal

Blank-check acquisition firm Bridgetown Holdings is considering a deal with the Indonesian eCommerce firm Tokopedia, Reuters reported on Tuesday (Dec. 15), citing sources.

Backed by Asian tycoon Richard Li and San Francisco billionaire Peter Thiel, some $595 million was raised for Bridgetown in an October public offering.

No decision has been made if the deal between Bridgetown Holdings and Indonesian eCommerce unicorn Tokopedia should be pursued, a source told Reuters. Further, the source added that Bridgetown was allegedly in talks with other Southeast Asian companies.

The 10-town regional intergovernmental organization — the Association of Southeast Asian Nations — said that Tokopedia is considered among the most valuable startups in the region. Backed by SoftBank, the firm could be valued at $8-$10 billion, according to sources, per Bloomberg.

Tokopedia has announced a funding round led by new investors Google and Temasek, the Singapore government-owned holding company.

Sources said that initial deliberations are uncertain, and Bridgetown might be considering other potential targets, the people said. Bridgetown surged 30% in premarket trading on Tuesday.

Bridgetown raised $550 million in a U.S. initial public offering in October, following other so-called blank-check companies such as those associated with billionaire investor Bill Ackman and former U.S. House Speaker Paul Ryan.

Merging with a SPAC has become an increasingly popular method for closely-held businesses to raise capital for growth. A potential merger with Tokopedia would also be in-line with the strategy that Bridgetown set out in its prospectus: to focus on a target in the technology, financial services or media sectors in Southeast Asia.

Tokopedia expanded to become Indonesia’s second-most valuable startup, just behind Gojek. With early backing from SoftBank and Alibaba, some $350 million has been invested in Tokopedia, people familiar with the matter have said.

In November, Tokopedia announced a funding round led by new investors Google and Temasek.