Sia-Tan Caktiong’s DoubleDragon makes a daring innovation by adding MerryMart to its portfolio in a P1.28 billion transaction.

For P1.28 billion, bilyonaryos Injap Sia and Tony Tan Caktiong’s joint venture, DoubleDragon Corp., is purchasing a 35% share in MerryMart Consumer Corp.

2.66 billion common shares are being purchased in this transaction, at a 30-day volume-weighted average price (VWAP) of P0.48 per share.

A 50% cash payment of Php 637.97 million and 50% in DoubleDragon shares, priced at P9.30 per share according to the same VWAP, will be used to finance the transaction. MerryMart is worth about P3.65 billion as a result of the acquisition.

Subject to regulatory approvals, DoubleDragon will have to hold an obligatory tender offer for MerryMart’s remaining shares after the purchase.

DoubleDragon’s position as an investment holding company is anticipated to be strengthened by MerryMart, which produces over P7 billion in recurring income annually, mostly from its retail and pharmacy sectors.

DoubleDragon’s plan to diversify its properties, which includes office buildings, community malls, and its asset-light Hotel101 company, is enhanced by the acquisition.

After changing its name to an investment holding company in 2021, DoubleDragon is still growing its footprint in important industries including retail and hospitality. The ultimate goal of the company’s Hotel101 division is to run one million hotel rooms worldwide.

DoubleDragon’s long-term growth strategy, which aims to generate P500 billion in sales by 2035, includes this acquisition. DoubleDragon is well-positioned to increase its investments in high-growth industries thanks to its Triple-A credit rating and total assets of more over P190 billion.