Report: Grab seeks more control by its founder in Gojek merger

The report stated that Tan also demanded significant voting power in the merged company, veto rights over board decisions, and a say in his compensation. Grab and Jakarta-based Gojek are also talking about matters such as “who gets to appoint, and under what conditions, the new [group] CEO in the event that [Tan] passes away.”

Nikkei Asia, however, understands that Grab has recently told investors that its proposal has been misinterpreted during and that the merged entity would be run in a way that complies with IPO regulations.

According to a source, Gojek is seeking a 40% share in the combined entity, but Grab thinks the amount is “fundamentally too much” as it believes its finances are more robust compared to Indonesian counterpart.

The companies have been working out a merger deal for nearly a year. The development comes after Grab CEO Tan reportedly told employees last month that the firm is “in a position to acquire” despite market consolidation rumors.

The Southeast Asian unicorns and SoftBank, which used its Vision Fund to invest in Grab, declined to comment on the matter.

The merger deal is backed by the Japanese conglomerate, and its executives are discussing the clauses with Tan. The current shareholding structure between Grab and Vision Fund is unclear, according to the report.

While Grab and Gojek investors support a merger between the two companies, a final agreement is still months away and either party may still exit the deal, the report said.