UMVA has learned that DoubleDragon Corp. has dramatically increased its ownership in MerryMart Consumer Corp. to 98.61%, effectively securing near-full control of the listed retailer.
This seismic shift in ownership comes after the completion of a mandatory tender offer, which saw shareholders tender and the company accept a staggering 4.83 billion MerryMart common shares during the offer period that ended on June 16.
The tendered shares, combined with shares acquired through a previously disclosed block sale transaction, catapulted DoubleDragon’s stake in MerryMart to an unprecedented level, far exceeding the 95% threshold commonly associated with voluntary delisting transactions.
This development paves the way for MerryMart’s planned delisting from the Philippine Stock Exchange, a move that was earlier disclosed by the company as part of its strategy to seek shareholder approval for its delisting from the local bourse.
DoubleDragon Chairman and Chief Executive Officer Edgar “Injap” J. Sia II hailed the transaction as a major milestone, stating that it forms part of the group’s efforts to consolidate ownership and align strategy across its businesses.
In a message to shareholders, Mr. Sia expressed his satisfaction with the outcome, saying, “I am pleased that the final tally of the MM shareholders who tendered their MM shares has totaled to close to 99%.”
The tender offer, internally referred to as “Project Solidify,” gave MerryMart shareholders the option to exchange their shares for a combination of 50% cash and 50% DoubleDragon shares valued at P9.30 apiece, providing shareholders with a premium to the stock’s trading price before the transaction was announced.
This strategic move is expected to strengthen integration within the DoubleDragon group, which includes MerryMart, CityMall, DDMP REIT, Inc., CentralHub Industrial Centers, Inc., and Hotel101, and create a more efficient and optimized business ecosystem.
DoubleDragon has been aggressively expanding beyond its traditional property business into retail, logistics, offices, hotels, and other recurring-income assets, with MerryMart contributing more than P7 billion in annual recurring revenues through its grocery, pharmacy, wholesale, and consumer-related operations.
With ambitious targets in sight, DoubleDragon is aiming for consolidated revenues of more than P500 billion and net income exceeding P50 billion by 2035, while pursuing expansion across its property, retail, logistics, and hospitality businesses.
As DoubleDragon charts its course for growth, shareholders who tendered their MerryMart shares will remain exposed to the broader DoubleDragon group through the share-exchange component of the transaction, as Mr. Sia welcomed them to the company’s exciting journey to 2035.
