Share Buyback, GOTO Prepares US$ 200 Million

CORPORATE ACTION-JAKARTA. PT GoTo Gojek Tokopedia Tbk (GOTO) plans to carry out a share buyback of up to US$ 200 million. This is in line with the performance throughout 2023. 

GOTO's CEO Patrick Walujo said that in line with improving profitability and cash flow, GOTO will optimize its capital utilization in line with the newly prepared capital allocation plan, 

"This plan includes the initiative to buy back GOTO shares or as much as US$ 200 million share buyback," he explained in an official statement received by Kontan, Tuesday (19/2)

Patrick said the corporate action could only be executed after GOTO obtained approval from the regulator and shareholders through the Annual General Meeting of Shareholders (AGM).

However, GOTO's board of commissioners and directors will periodically review the buyback plan and may make changes or adjustments if necessary. 

"More detailed information on the share buyback plan will be conveyed to all shareholders in accordance with applicable provisions," said Patrick. 

Read Also: GOTO Records a Net Loss of IDR 90 Trillion in 2023

Throughout 2023, GOTO recorded a net income of IDR 14.78 trillion. This achievement jumped 30.28% annually from IDR 11.34 trillion in 2022. 

Then GOTO's business loss shrank by 66.11% to IDR 10.27 trillion throughout 2023. In the previous year, the technology company's business loss reached IDR 30.32 trillion. 

However, due to the recording of goodwill of IDR 78.76 trillion in 2023 due to the release of control of PT Tokopedia, the loss attributed to the parent entity of GOTO swelled by 128.44% YoY to IDR 90.39 trillion. 

Previously, Equity Research Analyst of MNC Securities Alif Ihsanario considered the share buyback plan as a signal that management considers the current share price to be unreasonable. 

 

 

According to him, GOTO management believes it does not reflect the company's strength and future business prospects. Especially, after Tokopedia moved under the auspices of TikTok, this subsidiary of ByteDance Ltd. 

"GOTO's strategy should actually be examined in depth, because it can have a positive impact. For example, GOTO finally has a partner as big as TikTok and Bytedance to collaborate and monetize the business," explained Alif.