Indonesia sovereign wealth fund interested in Grab-GoTo deal: Bloomberg

[SINGAPORE] Indonesia’s sovereign wealth fund Danantara is considering a stake in the Grab acquisition of GoTo for US$7 billion, reported Bloomberg.

The sovereign wealth fund is said to be in preliminary discussions with GoTo to acquire a minority stake in the combined entity. The Indonesian government owning a slice of the Grab-GoTo entity could assuage concerns of the sale of a national tech champion to Singapore’s Grab.

Concerns over potential regulatory demands have slowed talks between Grab and GoTo. The Indonesian anti-trust agency said in May that it would look into potential risks and urging companies to ensure a monopoly is not created.

The potential deal first surfaced in February, with Grab mulling an all-stock purchase at 100 rupiah a share, valuing GoTo at more than US$7 billion. Grab was said to be moving forward with the deal in March, with evaluation of GoTo’s accounts, contracts and operations.

Grab was also seeking US$2 billion in financing in March as part of the deal.

GoTo has been retreating back to its home market in recent years, pulling out of Thailand and Vietnam after a cost-cutting drive. Singapore remains the only country outside of Indonesia where GoTo is still active.