June 9 (Reuters) - Singapore-based ride-hailing and

delivery company Grab said on Monday it was not in any

talks on a potential deal with smaller Indonesian rival GoTo

.

Reuters reported last month that Nasdaq-listed Grab was

looking to strike a deal to buy GoTo in the second quarter and

had hired advisers to work on the proposed deal, citing two

sources with knowledge of the matter.

A deal could value GoTo at around $7 billion, according to a

separate source with knowledge of the matter.

"There have been media reports that we are engaged in

discussions for a potential transaction with PT GoTo Gojek

Tokopedia Tbk. The parties are not involved in any discussions

at this time and Grab has not entered into any definitive

agreements," Grab said in a stock exchange filing.

Bloomberg reported on Friday, citing unnamed sources, that

Indonesia's sovereign wealth fund Danantara was considering a

role in Grab's planned $7 billion acquisition of GoTo.

"We will continue to maintain a high hurdle rate when

deploying our capital and will have a balanced approach to

investing for organic, profitable growth and be highly selective

on inorganic opportunities, in line with our capital allocation

framework," Grab said in its filing.

"Indonesia continues to be an important country in serving

our mission as we continue to outserve our Indonesian customers,

driver- and merchant-partners," it added.

Media reports, citing unnamed sources, have appeared on and

off for a few years about a possible merger between Grab and

GoTo.

In a separate statement, Grab said its on-demand gross

merchandise value grew 19% in April and May from a year earlier,

while the number of mobility rides for April and May rose 23%.