MerryMart board OKs PSE delisting

MANILA, Philippines — MerryMart Consumer Corp. of tycoon Edgar “Injap” Sia intends to exit the Philippine Stock Exchange (PSE) as it is set to become directly part of the DoubleDragon Group.

In a stock exchange filing, MerryMart said its board has approved its delisting from the PSE.

A special stockholders’ meeting has been set on July 7 to seek shareholders’ approval of the voluntary delisting.

“The main rationale of this transaction is to consolidate the focus of the DoubleDragon and MerryMart management team and to optimize the synergies that will be brought about by the combined forces of the DoubleDragon Group of the Injap Group and the Jollibee Group, who are the main principals of the combined DoubleDragon and MerryMart post-merger of the two entities,” MerryMart said.

DoubleDragon Corp., the listed company owned by Sia and Tony Tan Caktiong, has launched a mandatory tender offer for MerryMart shareholders.

The tender offer period, which kicked off on May 18 and will end on June 16, will be at P0.48 per MerryMart common share, payable 50 percent in cash and 50 percent in DoubleDragon common shares valued at P9.30 per share.

The P9.30 per share value to be paid to MerryMart shareholders is about 52 percent lower than DoubleDragon’s latest available book value at P19.21 per share.

Meanwhile, the tender offer at P0.48 per share is 20 percent above MerryMart’s trading price of P0.40 per share as of May 8.

“The tender offer of 50 percent cash and 50 percent in DoubleDragon shares are intended for the current MerryMart shareholders to be able to have the opportunity to become part of the combined DoubleDragon Group which is expected to have multiplier positive outcome from this strategic combination, in addition to the massive growth potential of the stronger combined groups in relation to its expansion in the Philippines and overseas,” MerryMart said.

MerryMart, which operates various formats such as MerryMart Express, MerryMart Market, MerryMart Grocery and MerryMart Wholesale, made its debut on the PSE in June 2020.

After DoubleDragon’s acquisition, MerryMart will become a direct part of the DoubleDragon Group, a move seen as elevating the company’s credit and financial position by making it a direct subsidiary of DoubleDragon, which currently has P225.3 billion in total assets.

DoubleDragon last year announced its entry into the essential retail space with the acquisition of a 35-percent stake in MerryMart, a company owned by Sia, at P0.48 per share.

The company is required to conduct a mandatory tender offer of the shares of MerryMart held by its remaining shareholders at the same valuation, subject to final regulatory approvals.

The Philippine Competition Commission has cleared the proposed acquisition.

The acquisition of MerryMart will complement the company’s investment-holding business.