DoubleDragon seeks more MerryMart shares
DoubleDragon Corp. has launched a mandatory tender offer for the remaining shares of affiliate MerryMart Consumer Corp. as it pushes deeper into the retail and consumer business segment.
In a disclosure on Wednesday, the company founded by tycoons Tony Tan Caktiong and Edgar Sia II said the tender offer would run from May 18 to June 16. This followed regulatory clearance for its acquisition of a 35-percent stake in MerryMart.
“DoubleDragon is now in an excellent position where it can capitalize on its strong balance sheet to add worthwhile investments outside of the property sector that would have massive growth potential. I am personally excited for what the future holds for the new DoubleDragon,” said DoubleDragon co-chair Tony Tan Caktiong.
Under the offer, MerryMart shareholders may tender their shares at P0.48 apiece, payable half in cash and half in DoubleDragon shares valued at P9.30 each.
The company said the offer price represented a 20-percent premium over MerryMart’s closing price of P0.40 per share as of May 8.
DoubleDragon noted, however, that the P9.30 valuation for its own shares was about 52 percent below its latest available book value of P19.21 per share.
The Philippine Competition Commission had already cleared the transaction, which covers the acquisition of 2.66 billion MerryMart shares worth about P1.28 billion.
The deal values MerryMart at around P3.65 billion based on the 30-day volume-weighted average price.
DoubleDragon said the acquisition would strengthen its transition into a diversified investment holding company, a strategy first laid out in 2021 when the company formally changed its name from DoubleDragon Properties Corp.
