Indonesian tech giant GoTo — formed from the merger of Gojek and Tokopedia in May this year — has bought shares in Lippo Group’s retail unit Matahari Putra Prima (MPPA) from its parent company, according to a stock exchange filing on Thursday.
PT Aplikasi Karya Anak Bangsa, as GoTo is legally called, bought 507.14 million shares of MPPA worth Rp355 billion ($25 million) from PT Multipolar (MLPL), according to the filing on the Indonesia Stock Exchange (IDX).
Following the transaction, GoTo now holds a 6.74% stake in MPPA, while Multipolar’s stake has been diluted to 31.59%, from 38.33% earlier, the statement added.
The transaction is meant to expand the holding of “large-scale investors in MPPA and for reinvestment,” according to Multipolar corporate secretary Natalie Lie.
Meanwhile, MPPA corporate secretary Danny Kojongian said the transaction will not affect the company’s operational activities, legal and financial condition, or its sustainability.
The transaction was first reported by DealStreetAsia on Monday, based on multiple sources with direct knowledge of the deal.
While GoTo just started investing in MPPA, Gojek had entered the company in May 2021 through its arm PT Pradipa Darpa Bangsa.
PT Pradipa Darpa Bangsa, which is almost entirely owned by Gojek with a small portion of it controlled by Gojek’s electronic wallet arm GoPay, bought 4.76% of MPPA shares worth more than $10 million from MLPL at the time.
MPPA, which operates supermarket brands Hypermart and Foodmart, is also planning on a rights issue in the fourth quarter of this year. Both GoTo and Multipolar plan to top up their investments in the retailer in the rights issue, according to an IDX filing on Tuesday seen by DealStreetAsia.
MPPA said it plans to use the capital to increase its market share, strengthen its balance sheet and boost its omnichannel retail strategy. It holds a 25% market share in the supermarket and hypermarket category, per NielsenIQ research data.
MPPA’s stock was trading at Rp805, down 6.94%, during the first half of the trading session on IDX on Thursday. MLPL’s share price dipped 6.67% to Rp448 apiece. So far in 2021, MLPL’s share price has increased 540%, while MPPA share price has soared nearly 667%.