DoubleDragon’s tender offer hikes MerryMart stake to 98.6%

MANILA, Philippines —  DoubleDragon Corp., the listed company chaired by tycoons Edgar “Injap” Sia II and Tony Tan Caktiong, has secured strong support from shareholders of MerryMart Consumer Corp. for its planned takeover of the listed retail firm.

“I am pleased that the final tally of the MM (MerryMart) shareholders who tendered their MM shares has totaled to close to 99 percent,” Sia said in a statement.

A mandatory tender offer was conducted by DoubleDragon from May 18 to June 16 to MerryMart shareholders.

During the period, a total of 4.83 billion common shares were tendered and accepted by DoubleDragon.

Last year, DoubleDragon made 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.

With the tendered shares, DoubleDragon’s ownership in MerryMart has been raised to 98.61 percent.

“DD (DoubleDragon)’s acquisition of MM or project solidify as we internally call this transaction, is intended to enable the MM shareholders to stay as DD shareholder with good exchange valuation of P9.30 of each DD share,” Sia said.

Sia said that MerryMart being part of the ecosystem of DoubleDragon would help streamline operations, cost effectiveness and provide other advantages of being part of the bigger group.

“These advantages will make the whole DD Group gain more efficient and more optimized business ecosystem. The recalibration should strategically benefit both entities over the long run,” he said.

MerryMart’s board has earlier approved the company’s exit from the Philippine Stock Exchange (PSE), with a special stockholders’ meeting set on July 7 to seek shareholders’ approval of the voluntary delisting.

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.

“To all the MM shareholders, I am glad that almost 99 percent of you have decided to tender your MM shares in exchange for half cash and half in DD shares. I welcome you to our exciting journey to 2035 as the DD Group including DD’s subsidiaries MerryMart, CityMall, DDMPR and CentralHub continue to purge its way to strengthen and cover all the 82 provinces in the Philippines and bring its novel and unique Hotel101 business model to 100 countries worldwide,” Sia said.

Under the company’s 2035 vision, DoubleDragon aims to grow its total revenues to P500 billion by 2035 from P27.9 billion in 2025.

“The journey will surely not be a straight line, but I personally believe that with the entrepreneurial grit, discipline, focus and relentless perseverance of our team and with the support of all the DD Group stakeholders we will remain inspired and energized to navigate our way towards that set vision,” Sia said.