GoTo Group has appointed a new CEO to replace Patrick Walujo, a move expected to accelerate Grab Holdings Ltd’s takeover of Indonesia’s largest internet company.
Chief Operating Officer Hans Patowo will take over leadership from Walujo, the company said on Monday. His appointment – which requires shareholder approval – comes after pressure from GoTo founders and prominent investors including SoftBank Group Corp. In order to oust Walujo due to poor stock performance.
The change marks a dramatic turnaround for GoTo, which said in January that Walujo, 50, would run the company for years to come. The former investment banker helped propel the Indonesian ride-hailing and delivery giant to its first profit during his two-and-a-half years as CEO. But the company lost more than 40% of its value during the same period, and he also opposed its acquisition by Singaporean company Grab.
GoTo shares rose 6.3% in Jakarta on Monday, giving the company a market value of about $5 billion. Grab, which is traded in New York, has a market capitalization of $20 billion.
“The move could signal a pivot toward operational focus and a revival of the long-stalled proposed Grab-GoTo merger,” Citigroup analysts Ferry Wong and Ryan Davis wrote.
Patuo, 49, is now set to take the helm of a company mired in ongoing chaos, grappling with the global shift toward artificial intelligence and preparing to revive talks with Grab. The possibility of a takeover is increasing – after years of on-and-off discussions – after the Indonesian government said it was talking to both companies about a deal.
The country’s sovereign wealth fund, Dhanantara, is set to acquire included In the plan to merge the two companies. The fund began exploring a minority stake in a combined entity early this year, people familiar with the matter said June.
Its participation could allay fears of losing consumers in the event of a merger between the country’s two largest ride-hailing companies. “Dhanantara’s potential minority stake in a potential joint entity would serve as a symbolic and structural safeguard of the national interest,” Citigroup analysts wrote, and would allay monopoly concerns.
Batwo joined the company more than seven years ago from an Indonesian group, according to him LinkedIn Introductory account. He started at ride-hailing company Gojek, where he built relationships with drivers and dealers and expanded its network across the country. Pato then moved on to head payments and financial services.
Among other leadership changes, GoTo said it is appointing co-founder Andre Suelistyo to the board of commissioners. In Indonesia, corporate commissioners typically act as a separate body from directors, and act as a kind of steering committee on matters including corporate governance.
Sulistyo, who headed the company before Walujo replaced him, helped pull off the merger of Gojek and e-commerce company Tokopedia that created Indonesia’s largest internet company. Previously, he was CEO at Northstar Group, Walujo’s predecessor private equity firm.
GoTo shareholders will vote on matters including a leadership change at an extraordinary general meeting on December 17.
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