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Jakarta, CNBC Indonesia – Grab and Gojek reportedly agreed to merge operations in Southeast Asia. Now the two companies only need to solve a series of problems that block this corporate action.
This is a DealStreetAsia report citing a number of sources who do not wish to be named, such as the one compiled by CNBC Indonesia on Thursday (03/12/2020).
The report indicates that one of the obstacles that must be resolved is the composition of the shareholders. The merger of the Grab and Gojek operations in Southeast Asia will form a new business entity.
In this new entity, Grab offers Gojek a 30% stake, but Gojek management and shareholders are asking for a larger share due to Gojek’s high penetration in Indonesia, which is the largest market in Southeast Asia.
Another issue that needs to be resolved is the brand used for the Indonesian operations. Grab proposes a joint brand, while Gojek prefers to maintain its already strong brand in Indonesia.
DealStreetAsia informs that the management of the new entity resulting from the merger will be subsequently controlled by Grab, considering that Grab’s valuation is higher than Gojek’s. Grab is valued at $ 14 billion, while Gojek is worth $ 10 billion.
Gojek co-CEOs Andre Soelistyo and Kevin Aluwi will lead a joint entity operation in Indonesia and will report to Grab co-founder Anthony Tan.
A DealStreetAsia source said the two companies are in the “advanced negotiation” phase. Even Gojek’s top executives are currently in Singapore.
In response to these rumors, the Head of Corporate Affairs, Gojek, said that he could not respond to the rumors that were circulating. He said Gojek’s business fundamentals were strengthening, even during the pandemic.
“Some of our services have even posted positive contribution margins. We continue to prioritize sustainable growth to provide the best service to our users and partners across all of our operations,” he told CNBC Indonesia.
(roy / dru)
