GoTo denies merger rumours, says no agreement with Danantara and Grab

GoTo Gojek Tokopedia has denied rumours of a potential merger with Singapore-based rival Grab Holdings, stating, “no decisions or agreements have been made regarding this matter to date,” the company’s Director of Legal and Group Corporate Secretary, R. A. Koesoemohadiani, said in a filing to the Indonesia Stock Exchange (IDX).

The company added that there are no agreements with Danantara or Grab.

GoTo’s explanation came after Indonesia’s State Secretary Prasetyo Hadi said that sovereign wealth fund Danantara, along with several ministries, is taking part in discussions about the potential merger between the two ride-hailing firms, according to Bloomberg News.

GoTo’s shares jumped as much as 9.8% to their highest level since Aug 13 following reports of the government’s participation in the merger.

In March, Grab was reportedly in talks to raise up to US$2 billion (S$2.68 billion) in loans to fund a possible takeover of Indonesia’s GoTo.

In June, Bloomberg News reported that Danantara had begun preliminary discussions with GoTo to acquire a minority stake in the merger. However, days later, Grab dismissed reports of a possible merger with GoTo, saying that no discussions were happening and no definitive agreements had been made. /TISG

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