Grab denies acquisition talks with GoTo

Danantara also denied involvement.

Grab has denied it is in talks to acquire Indonesian tech firm GoTo, dismissing recent media reports of a potential US$7b deal, Reuters reported.

"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.

Last month, Reuters reported that Grab had hired advisers and was planning to make a bid for GoTo in the second quarter. Bloomberg also reported that Indonesia’s sovereign wealth fund, Danantara, was considering supporting the deal.

Danantara denied the report. Its managing director of investment, Stefanus Ade Hadiwidjaja, told Tempo on Monday that there had been no such discussions.

GoTo also reiterated in a separate filing to the Jakarta bourse that no agreement had been made with any party.

Grab said it remains focused on profitable growth. "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."

The company said Indonesia remains a key market and it is committed to serving its customers, drivers and merchant partners in the country.

In a separate statement, Grab reported a 19% year-on-year rise in on-demand gross merchandise value in April and May, with mobility rides up 23%.