Grab denies reports of US$7 billion GoTo acquisition

SOUTHEAST Singapore-based ride-hailing and delivery company Grab said on Monday it was not in any talks on a potential deal with smaller Indonesian rival GoTo.

Reuters reported last month that Nasdaq-listed Grab was looking to strike a deal to buy GoTo in the second quarter and had hired advisers to work on the proposed deal, citing two sources with knowledge of the matter.

A deal could value GoTo at around US$7 billion, according to a separate source with knowledge of the matter.

“There have been media reports that we are engaged in discussions for a potential transaction with PT GoTo Gojek Tokopedia Tbk. The parties are not involved in any discussions at this time and Grab has not entered into any definitive agreements,” Grab said in a stock exchange filing.

Bloomberg reported on Friday, citing unnamed sources, that Indonesia’s sovereign wealth fund Danantara was considering a role in Grab’s planned US$7 billion acquisition of GoTo.

Danantara’s managing director of investment, Stefanus Ade Hadiwidjaja, told Indonesian online media outlet Tempo, in a statement on Monday, that there have been no such discussions.

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GoTo, in a statement to the Jakarta bourse on Monday, reiterated its previous statements that there has been no agreement with any party about a potential transaction.

“We will continue to maintain a high hurdle rate when deploying our capital and will have a balanced approach to investing for organic, profitable growth and be highly selective on inorganic opportunities, in line with our capital allocation framework,” Grab said in its filing.

“Indonesia continues to be an important country in serving our mission as we continue to outserve our Indonesian customers, driver- and merchant-partners,” it added.

Media reports, citing unnamed sources, have appeared on and off for a few years about a possible merger between Grab and GoTo.

In a separate statement, Grab said its on-demand gross merchandise value grew 19 per cent in April and May from a year earlier, while the number of mobility rides for April and May rose 23 per cent. REUTERS