DoubleDragon evolves into holding company

Double Dragon Corp., the partnership between tycoons Tony Tan Caktiong and Edgar Sia II, is finally transitioning into a holding company with its acquisition of Sia's listed retailer MerryMart Consumer Corp. after initially buying a 35-percent stake for P1.28 billion.

- By JAMES A. LOYOLA

In a disclosure to the Philippine Stock Exchange (PSE), DoubleDragon said its board of directors had approved the acquisition of 2.66 billion common shares of MerryMart for P1.28 billion, based on the 30day volume-weighted average price (VWAP) of MerryMart shares at Po.48 per share.

Half of the purchase price will be paid using Double Dragon sharesalso valued using the past 30-day VWAP of P9.30 per share-and 50 percent in cash, amounting to P637.97 million.

This transaction translates to a total equity valuation for MerryMart of approximately P3.65 billion, based on 30-day VWAP pricing.

As a result of the transaction, the purchaser Double Dragon is required to conduct a mandatory tender offer of MerryMart shares held by remaining shareholders of its total issued and outstanding capital stock, at the same valuation, subject to final regulatory approvals.