SINGAPORE: United States-listed ride-hailing and food delivery company Grab is looking to strike a deal to take over smaller Indonesian rival GoTo in the second quarter, two sources with knowledge of the matter said.
Singapore-headquartered Grab has hired advisers to work on the proposed deal, the two sources added. The deal is subject to terms such as financing, which Grab is in discussion with banks, one of the sources added.
Grab declined to comment.
In a stock exchange filing on Thursday (May 8), GoTo said it has not made any decision regarding any proposals it may have become aware of or received.
A deal could value GoTo at around US$7 billion, according to a separate source with knowledge of the matter. Jakarta-listed GoTo’s shares have climbed 20 per cent year-to-date, giving it a market value of around US$5.8 billion, LSEG data showed.
Grab’s shares on Nasdaq are up 2.4 per cent so far this year, giving it a market value of nearly US$20 billion, according to LSEG data.
GoTo will be selling off its international unit, two separate sources familiar with the matter said. In Indonesia, GoTo will sell its entire operations except its finance arm to Grab, one of the two sources added.
Deal terms are not finalised and could change as the two companies are still in negotiations, the sources cautioned.
Grab, backed by Uber, offers delivery, mobility and financial services, among others, according to its website.
GoTo, whose investors include SoftBank and Taobao China Holding, described itself as Indonesia’s largest digital ecosystem that provides e-commerce and banking services, its website showed.
https://www.channelnewsasia.com/business/grab-looking-take-over-goto-indonesia-ride-hailing-food-delivery-5114536
