MerryMart operates supermarkets, convenience stores, pharmacies and wholesale outlets as part of its push to build a nationwide essential retail network.
The proposal will be submitted to shareholders for approval on July 7, marking the next step in DoubleDragon’s plan to consolidate ownership of the grocery, pharmacy and wholesale retailer.
DoubleDragon shares jumped nearly 8 percent to P11 each on Tuesday while shares of MerryMart were suspended for failing to file its quarterly report.
DoubleDragon, backed by Sia and fast food tycoon Tony Tan Caktiong, already controls about 35 percent of MerryMart following a P1.28-billion acquisition completed last year and is currently conducting a tender offer for the remaining 65 percent public float.
The tender offer covers up to 4.94 billion shares at P0.48 each, payable half in cash and half in DoubleDragon shares, valued at P9.30 each.
Management said the transaction would bring together the operations of the DoubleDragon Group, Injap Group and Jollibee Group while optimizing synergies across the combined businesses.
MerryMart would also become a direct subsidiary of the Triple-A rated DoubleDragon Group, which reported P225.3 billion in total assets.
The retailer debuted on the Philippine Stock Exchange in June 2020 at P1 per share, while its stock last closed at P0.435 each.
—Edited by Miguel R. Camus
