Grab-GoTo deal hits snag caused by state-backed holder’s stake

Grab Holdings’ planned multibillion-dollar acquisition of GoTo Group has hit a stumbling block.

Negotiations over the deal have snagged over Indonesian wireless carrier Telkomsel’s roughly 2% stake in GoTo, people familiar with the matter said.

The carrier — majority-owned by state-controlled PT Telkom Indonesia — has indicated it’s unwilling to sell at anywhere near current valuations because it originally invested at a much higher price, the people said. Telkomsel has expressed its concerns about losses linked to state capital — something that’s punishable by Indonesian law, said the people, who asked not to be identified because the discussions are private.