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Bukalapak responds to TEMU acquisition report following recent share price increase

Indonesian e-commerce giant Bukalapak has responded to a report by local media about a potential acquisition by Chinese e-commerce company TEMU, which circulated earlier this week.

In a letter to the Indonesia Stock Exchange (IDX) reviewed by e27, the company stated that it was “not aware of any information regarding its acquisition plans by TEMU (a China-based company).”

“In relation to the aforementioned response, the company will disclose information in accordance with applicable laws and regulations once it receives verified details regarding the acquisition plan,” wrote Bukalapak Corporate Secretary Cut Fika Lutfi.

It also commented on Monday’s share price increase, which coincided with the release of the report.

“The increase in share price on October 7 reflects the market’s reaction to unverified information regarding the company’s acquisition plans, which has not been confirmed by the company’s management. Market speculation is beyond the company’s control,” she said.

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“Therefore, the company advises public shareholders and investors to observe official disclosure of information by the company before making any investment decisions on the company.”

In July, Bukalapak reported that its revenue for the second quarter grew six per cent quarter-over-quarter to IDR1.2 billion (US$76.45 million).

The company stated that its adjusted EBITDA for the second quarter was IDR41 billion, which improved by IDR84 billion year over year.

In the same month, DealstreetAsia wrote that Singapore’s sovereign wealth fund GIC considered selling its minority stake in Bukalapak.

According to the report, the discussions are in the preliminary stages. GIC has not yet decided whether to hire bankers for the sale or handle it internally.

GIC and Bukalapak declined to comment on the potential divestment when contacted by DealstreetAsia.

Image Credit: Bukalapak

The post Bukalapak responds to TEMU acquisition report following recent share price increase appeared first on e27.

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