DoubleDragon is owned by tycoons Edgar “Injap” Sia II and Tony Tan Caktiong while MerryMart is owned by Sia.
On April 15, 2025, its board approved the P1.28-billion deal, priced at P0.48 per share based on the 30-day volume-weighted average.
MerryMart, which went public in the midst of COVID-19 pandemic in 2020 at P1 per share, surged 25 percent to P0.60 each on Wednesday morning. DoubleDragon rose 6.76 percent to P9 each.
Diversification
MerryMart, which runs supermarkets, minimarts, and pharmacy chains nationwide, generates over P7 billion in annual recurring revenue, creating a steady income stream that complements DoubleDragon’s shift away from pure real estate.
“The acquisition is also in line with the transition of DoubleDragon Corporation into an investment holding company,” the company said in a stock exchange filing.
“This is in accordance with the vision of DD chair Edgar Injap Sia II and co-chair Tony Tan Caktiong four years ago in April 2021 when it officially changed its corporate name from DoubleDragon Properties Corp.,” it added.
Prelude to majority stake? Deal expert shares views
"It's a way for DoubleDragon to diversify its investment portfolio. Right now, their holdings are highly concentrated in real estate. Taking a substantial stake in MerryMart will give them exposure to the consumer retail business. On the other hand, MerryMart will benefit from the financial, management, and strategic support of DoubleDragon," said Juan Paolo Colet, managing director at China Bank Capital.
"This might be a prelude to DoubleDragon eventually taking a majority stake in MerryMart. At this point, we do not think there will be many public shareholders who will participate in the tender offer since the market price is above the [minimum tender offer] price," he said.
"Moreover, the MTO price is near the stock's all-time low," he added.
Payment in cash, shares
The payment will be split evenly: P638 million in cash and the rest in DoubleDragon shares, priced at P9.30 per share.
This values the entire MerryMart business at P3.65 billion.
Tender offer
Because DoubleDragon’s new stake crosses the 35 percent threshold, it is required by law to conduct a mandatory tender offer for the remaining shares it doesn’t own.
This means public shareholders will have the option to sell their MerryMart shares to DoubleDragon at the same price, giving investors an exit opportunity and potentially increasing DoubleDragon’s stake even further.
Complementary business
The deal deepens DoubleDragon’s exposure to consumer demand in everyday essentials. MerryMart operates across Luzon, Visayas, and Mindanao, with strongholds in Quezon, Zamboanga, and Capiz. The company runs multiple formats in retail and wholesale, and owns pharmacy brands that hold a major regional presence.
