DoubleDragon Corp., the real estate firm led by tycoons Edgar “Injap” Sia II and Tony Tan Caktiong, has approved the acquisition of a 35 percent stake in MerryMart Consumer Corp. for P1.28 billion.

In a stock exchange disclosure on Wednesday, DoubleDragon said its purchase of 2.66 billion ordinary shares of MerryMart, priced at P0.48 per share, starts its transition into an investment holding company.

The transaction will be paid 50 percent in DoubleDragon shares, valued at P9.30 per share, and 50 percent in cash, amounting to P637.97 million.

DD’s portfolio

MerryMart, which generates over P7 billion in recurring annual revenues from essential retail such as groceries and pharmacies complements DoubleDragon’s portfolio as an investment holding company.

It is expected to further enhance DoubleDragon’s investment portfolio, which includes provincial community malls, office buildings, warehouse complexes, and the asset-light Hotel101 brand, which aims to operate one million rooms globally across 100 countries.

In turn, the deal will place an equity valuation of approximately P3.65 billion on MerryMart.

Revenue goal by 2035

The buyout also aligns with DoubleDragon’s goal of achieving P500 billion in revenues by 2035. The company has total assets exceeding P190 billion and holds a Triple-A credit rating.

Following the acquisition, DoubleDragon will conduct a mandatory tender offer for the remaining shares of MerryMart’s other shareholders, at the same valuation, pending final regulatory approvals.