Indonesian conglomerate PT Elang Mahkota Teknologi Tbk (Emtek) has, through its subsidiary PT Kreatif Media Karya (KMK), increased its stake in Indonesian-listed major e-commerce company PT Bukalapak.com Tbk for 1.3 trillion rupiah ($79.6 million), according to its disclosure on the Indonesia Stock Exchange (IDX) on Tuesday.
KMK acquired a 9.44% stake in Bukalapak at 138 rupiah per share, bringing the total transaction value to 1.3 trillion rupiah. With this acquisition, KMK’s stake in Bukalapak has increased to 34.05% from 24.61%.
KMK is Emtek’s digital business arm whose core products include BlackBerry Messenger, news platforms Liputan6.com and Bola.com, and the video streaming service Vidio.com.
With the increased investment, KMK is now the majority shareholder in Bukalapak. Other shareholders in the e-commerce major include GIC, which holds a 9.44% stake through Archipelago Investment, and Emtek with 10.35%.
Meanwhile, Bukalapak has announced its decision to discontinue its physical goods marketplace and shift its focus to virtual products. The IDX-listed company is undergoing a strategic transformation to streamline operations and strengthen its core offerings across four key pillars: Mitra Bukalapak, gaming, investment, and select retail services.
As of June 2024, Bukalapak has utilised 11.94 trillion rupiah ($737 million) of its IPO proceeds, while retaining the remaining 9.82 trillion rupiah ($606.1 million).
In a statement to IDX, the company outlined its plan to allocate IPO funds selectively, prioritising entities with strong business performance and high growth potential, particularly in its four key segments.
“However, we are also open to acquisition opportunities in other industries or sectors that can support the sustainable growth of the company and its subsidiaries, as well as strengthen our portfolio,” the company stated.
Bukalapak reported an adjusted EBITDA loss of 168 billion rupiah in Q3 2024, a 76% increase from 95 billion rupiah in Q3 2023, according to its IDX filings. For the first nine months of 2024, the company’s adjusted EBITDA improved by 55%, narrowing to a negative 193 billion rupiah from 429 billion rupiah in the same period in 2023.
