(Reuters) – Indonesia’s PT GoTo Gojek Tokopedia said on Wednesday it has sold its stake in local retailer Alfamart worth 1.5 trillion rupiah ($96.03 million), days after the tech firm announced its strategy to focus on accelerating profitability.
The announcement comes at a time when GoTo shares are trading at record low levels.
The expiry of an eight-month lock-in period for pre-IPO shareholders followed by some of them deciding not to take up a secondary offering meant shares plunged nearly 55% in the last two weeks, wiping out nearly $8.8 billion in market value.
GoTo is the result of a merger between ride hailing-to-payments company Gojek and e-commerce leader Tokopedia. Since going public in April, GoTo has lost more than $23 billion in market value and is trading at 94 rupiah – 72% below the IPO value of 338 rupiah.
GoTo, which logged a narrower loss in the third quarter, aims to prioritise profitability, consider shaving off non-core assets and investmentd, and not make any “new investments that do not contribute to acceleration of profitability”.
“Alfamart has performed strongly, providing us with an opportunity to realise a significant gain on our minority investment,” said Jacky Lo, GoTo’s chief financial officer.
Alfamart, which trades as Sumber Alfaria Trijaya, was down 0.4% as of 0718 GMT to 2,590 rupiah.
($1 = 15,620.0000 rupiah)
(Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)
