Neutral on AirAsia Digital acquiring Gojek Thailand
KUCHING: Analysts are neutral on AirAsia Digital, the digital arm of Airasia Group Bhd and Indonesian ride-hailing and payment firm Gojek, making a partnership to acquire Gojek’s operations in Thailand.
This win-win deal is expected to rev up expansion of the Airasia Super App in Asean, while enabling Gojek to increase investments in its Vietnam and Singapore operations, the budget airline said in a statement.
In return, Gojek will receive shareholding in the AirAsia Super App whose market value is around US$1 billion (US$1=RM4.16).
According to the statement, the deal provides both parties with a strong foundation to explore additional opportunities for collaboration and synergies in one of the fastest-growing regions in the world.
As part of its commitment to Thailand, the AirAsia Super App aims to continue to leverage the existing ecosystem services for riders, merchants and customers, while adding new offerings such as groceries and beauty items.
The carrier also said that it will seek regional expansion into new markets like Chiang Mai and Phuket in the near future.
The Gojek application (app) will continue to operate for existing users in Bangkok until July 31, 2021 to ensure stability for Gojek drivers and merchants who will be invited to onboard the AirAsia Super App in the coming weeks.
“AirAsia will work with the existing Gojek team in Thailand, who will operate the Gojek business during the transition period before moving over to the AirAsia Super App, bringing local market expertise and a deep understanding of Thai user needs to the business,” said AirAsia group chief executive officer (CEO) Tan Sri Tony Fernandes.
The CEO also said that by taking on Gojek’s well-established Thai business, the airline would be able to turbocharge its ambitions to become a leading ASEAN challenger super app.
“We have a complete digital economy ecosystem including over 15 different non-airline products and lifestyle services on our digital e-commerce platform in Malaysia.
“Now it’s time to take it to the next level,” he said.
With the purchase consideration worth circa RM207 million, MIDF Amanah Investment Bank Bhd (MIDF
Research) estimated the implied valuation of the AirAsia Superapp Sdn Bhd to be in the region of US$1 billion, or slightly above RM4 billion.
It said the valuation is bigger than the group current market capitalisation of about RM3.5 billion.
“Timing wise, the pandemic has further fueled the company’s zeal to pursue its digital routes,” MIDF Research said. “In term of financial performance, in 2020, one of the two companies in the proposed purchase, recorded revenue of around RM31.64 million and net losses of RM75.91 million.
Nevertheless, the research house believed AirAsia’s digital segment was still in its infancy stage and altogether a different ball game as opposed to AirAsia traditional business, airlines.
“Our thinking is that the digital segment of AirAsia is not self-sustaining yet and still at the scale that cannot sustain the whole group; especially in nearterm. As of now, survival of the company is depending on the success of the group fundraising activities and revving back its core business, airlines.
“Without successfully addressing the immediate needs of its airline business, AirAsia is still going to be in precarious state, foreseeably longer than 2021 or 2022.
“At this juncture, we maintained our earnings forecast for the group.”