PT GoTo Gojek Tokopedia Tbk (GoTo), Indonesia’s largest tech group, said on Wednesday that it has sold stake in local retailer PT Sumber Alfaria Trijaya Tbk, popularly known as Alfamart, worth 1.5 trillion rupiah ($96 million).
DealStreetAsia understands that GoTo still retains a minority stake in the local retailer.
“Alfamart has performed strongly, providing us with an opportunity to realise a significant gain on our minority investment,” Jacky Lo, GoTo Group CFO, said in a statement without specifying the quantum of the gain.
The divestment reflects GoTo’s plan to focus on its core business and achieve profitability as communicated in its latest earnings update. The company had said after posting its Q3 earnings that it is reviewing the opportunity for divesting non-core assets.
“We have been working with Alfamart’s management team for a number of years as we collaborate to make life more convenient for consumers while improving access to financial services for all Indonesians. Alfamart is a leading retailer in Indonesia, with whom we have always shared a common vision and we look forward to continuing this strong relationship in the years ahead,” Lo said.
GoTo’s shares closed at 94 rupiah apiece on Wednesday, dropping 6% on the day. The stock has declined more than 70% since the company’s IPO in April, prompting the Indonesia Stock Exchange to put it under a watchlist for any unusual trading activity. The share price was particularly hurt last month following the expiry of a lock up period for pre-IPO investors
Alfamart’s shares dropped 0.38% on Wednesday to 2,590 rupiah apiece. The stock, however, has risen by more than 110% year-to-date.