Gojek, Tokopedia Seek Investor Approval After Deciding Merger Terms

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Gojek and Tokopedia have decided on terms and are seeking investor approval for a merger that could create Indonesia’s largest internet company, a person familiar with the matter said, putting the deal on track for completion as soon as over the summer.

The managements and boards of both startups have agreed on how to proceed with the merger and are now formally seeking approval for the deal from shareholders through a so-called consent package, the person said, asking not to be identified discussing a private matter. The management teams are aligned on strategy and their boards have given significant support, the person added.

The two Indonesian tech pioneers have common investors, including Google, Temasek Holdings Pte and Sequoia Capital India. Tokopedia is also backed by Alibaba Group Holding Ltd., which has its own e-commerce unit in the region, Lazada.

Indonesia’s two most valuable startups are in the final stages of completing a tie-up that would make them the biggest players in e-commerce and ride-hailing in Southeast Asia’s most populous nation. The two companies have discussed a variety of scenarios with the goal of ultimately listing the combined entity in both Jakarta and the U.S., which could be worth as much as $40 billion.

Gojek had been in discussions with ride-hailing rival Grab Holdings Inc. about a possible merger, but those talks dragged on and ultimately collapsed. Among other issues, that deal would likely have faced regulatory opposition since it would combine the two major providers of on-demand rides and delivery services in several Southeast Asian markets.

Grab is now on the verge of listing via a merger with Altimeter Capital’s first blank-check company, in a deal that could value the Southeast Asian ride-hailing giant at about $40 billion, people familiar with the matter have said.

©2021 Bloomberg L.P.

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