DoubleDragon to launch tender offer for MerryMart shareholders

DOUBLEDRAGON CORP. (DD) said it will launch a mandatory tender offer for shareholders of MerryMart Consumer Corp. (MM) from May 18 to June 16 following Philippine Competition Commission (PCC) clearance for its planned acquisition of shares in the retailer.

“As a required next step to the previous disclosure of DD, DD to publish the announcement in relation to the required mandatory tender offer to the shareholders of MM,” the company said in a regulatory filing on Wednesday.

The tender offer price was set at 48 centavos per MerryMart common share, with payment to be made half in cash and half in DoubleDragon common shares valued at P9.30 each.

“The tender offer shall be at P0.48 per MM common share, payable by fifty percent (50%) in cash and fifty percent (50%) to be paid in DD common shares valued at P9.30 per share,” the company said.

DoubleDragon said MerryMart would become part of the DoubleDragon Group after the transaction.

Earlier this year, the PCC approved DoubleDragon’s proposed acquisition of shares in MerryMart, issuing its decision before the end of the Phase 1 review period.

In April last year, DoubleDragon announced plans to acquire a 35% stake in listed consumer and wholesale retailer MerryMart under a P1.28-billion deal.

Under the transaction, DoubleDragon will acquire 2.66 billion MerryMart common shares from Injap Investments, Inc. at 48 centavos apiece, based on the 30-day volume-weighted average price (VWAP) of MerryMart shares.

Half of the acquisition will be settled through the issuance of DoubleDragon shares, while the remaining half will be paid in cash amounting to P637.97 million.

DoubleDragon amended its articles of incorporation in April 2021 to shift its primary purpose from a real estate developer to an investment holding company.

The company earlier said the acquisition would support its target of reaching P500 billion in revenue by 2035.

Shares in DoubleDragon rose 0.1% to close at P9.79 apiece on Wednesday. — Alexandria Grace C. Magno