GoTo Group Installs New CEO as Grab Takeover Prospects Rise
A leadership shakeup at Indonesia’s largest internet company, GoTo Group, is underway with the appointment of Hans Patuwo as chief executive officer, a move widely anticipated to accelerate discussions surrounding a potential takeover by Singapore-based grab Holdings Ltd.
The change at the helm, announced Monday, comes after mounting pressure from GoTo co-founders and major investors, including SoftBank Group Corp., stemming from the company’s recent stock performance. Patuwo, currently the company’s chief operating officer, will assume the role pending shareholder approval.
The decision marks a significant reversal for GoTo, which just months ago, in January, affirmed its commitment to Patrick Walujo’s leadership for the foreseeable future. walujo, 50, a former investment banker, successfully guided GoTo to its first-ever profit during his two-and-a-half-year tenure.However, the company’s stock value plummeted by over 40% during the same period, and Walujo publicly opposed a merger with Grab.
Shares of GoTo experienced a surge of up to 6.3% in Jakarta trading on Monday, bringing the company’s market capitalization to approximately $5 billion. In comparison, Grab, listed in New York, boasts a market capitalization of $20 billion.
“The transition could signal a pivot towards operational focus and revive the long-stalled proposed Grab-GoTo merger,” analysts at Citigroup Inc., ferry wong and Ryan Davis, wrote in a research note.
Patuwo, 49, now faces the challenge of revitalizing a company struggling to adapt to the evolving landscape of artificial intelligence while concurrently preparing for renewed merger negotiations with Grab. The likelihood of a takeover, following years of intermittent discussions, has increased significantly following indications that the Indonesian government is engaging with both companies regarding a potential deal.
Indonesia’s sovereign wealth fund, Danantara, is poised to play a crucial role in facilitating a combination of the two companies. The fund initiated exploration of a minority stake in a merged entity earlier this year, as reported in June. its involvement is expected to alleviate concerns regarding potential negative impacts on consumers and address potential monopoly issues.
“Danantara’s possible minority stake in a potential combined entity would serve as both a symbolic and structural safeguard of national interest,” the Citigroup analysts explained.
Patuwo brings over seven years of experience with the company, beginning with Gojek, GoTo’s ride-hailing arm, where he focused on building relationships with drivers and merchants and expanding the network nationwide. He later transitioned to lead the company’s payments and financial services divisions.
In addition to the CEO change, GoTo announced the appointment of co-founder Andre Soelistyo to the board of commissioners. In Indonesia, commissioners serve as a steering committee focused on corporate governance and strategic oversight, functioning separately from the executive directors. Soelistyo previously lead the company before being succeeded by Walujo and was instrumental in the merger of Gojek and e-commerce platform Tokopedia that created GoTo. He previously held a position as an executive director at Northstar Group,Walujo’s former private equity firm.
GoTo shareholders are scheduled to vote on the leadership changes and other matters at an remarkable general meeting on December 17. The outcome of this vote will be a key indicator of the company’s future direction and the prospects for a potential merger with Grab.
