GoTo Group sold a stake in Indonesian convenience store operator Alfamart to focus on its main internet businesses and assuage investor concerns.
The Jakarta-based ride-hailing and e-commerce company sold the stock for a total of 1.5 trillion rupiah ($130.6 million), according to a statement Wednesday. GoTo made a “significant gain” on the minority investment, Chief Financial Officer Jacky Lo said.
Shares of GoTo, hurt by the expiry of a lockup on major shareholders’ stakes that freed them to reduce their holdings, continued their plunge after a brief jump on Tuesday snapped 16 straight sessions of losses.
GoTo shares dropped by as much as 7% on Wednesday — the daily limit — hitting 93 rupiah in Jakarta trading. The stock has declined more than 70% since its April debut, which has prompted the Indonesia stock exchange to put GoTo on its watchlist for any unusual trading activity.
Management held a meeting with investors on Thursday in which they said GoTo has enough funds to last until it reaches profitability and that it’s considering asset sales — comments that did little to halt the stock’s slide.
Shares of Alfamart, also known as Sumber Alfaria Trijaya Tbk PT, have more than doubled this year.
