Malaysia-based supermarket chain Jaya Grocer has been acquired by Grab
Southeast Asia’s ride-hailing and food delivery firm Grab Holdings Ltd , which debuted on NASDAQ early this month, plans to acquire premium supermarket chain Jaya Grocer , a filing with the US Securities & Exchange Commission showed.
While Grab did not disclose the financials of the transaction in the filing, the deal is said to be worth between MYR1.5 billion ($354 million) and MYR1.8 billion ($425.42 million), local media theedgemarkets.com reported, quoting sources familiar with the matter.
“Grab and Jaya Grocer can confirm that both companies have entered into an agreement, where Grab will purchase a partial stake in Jaya Grocer.
Grab said in the filing that a subsidiary of the company has on Dec 11 entered into a share purchase agreement (SPA) with the current shareholders of Jaya Grocer Holdings Sdn Bhd to acquire all of the ordinary shares of Jaya Grocer and 75 percent of the preference shares of Jaya Grocer.
Jaya Grocer is a leader in the premium grocery segment in Malaysia and operates 40 stores across Peninsular Malaysia, with the majority being located in the Klang Valley near Kuala Lumpur, Grab said in the filing dated Dec 13.
It is worth noting that besides operating the offline stores, Jaya Grocer also provides grocery delivery services through its website and apps. Since COVID-19, the so-called Jaya Grocer Online Hubs provides extra delivery modes, such as Store Pickup and Next Day Delivery in certain areas including Kuala Lumpur, Petaling Jaya, Penang, Johor Bahru, among others, its website showed .
“Subject to certain terms, the Grab Holdings Ltd (GHL) subsidiary will have the option to buy, and the current shareholders will have the option to sell to the GHL subsidiary, the remaining 25 percent of the preference shares of Jaya Grocer after the closing of the transaction,” the company said.
For local regulatory purposes, GHL intends to partner with a local investor which will own 50 percent of the voting shares in Jaya Grocer.
Closing under the SPA is subject to customary conditions and is currently expected to occur in the first quarter of 2022, the company added.
“Following closing, Jaya Grocer is expected to become a subsidiary of GHL and its financial results will be consolidated by GHL,” Grab said.
Grab made its debut on the Nasdaq early this month , following a $40 billion merger with a special purpose acquisition company (SPAC). The listing on Nasdaq is expected to provide up to approximately $4.5 billion in cash proceeds to Grab.
Proceeds include more than $4 billion of fully committed private investment in public equity (PIPE) led by $750 million from funds managed by Altimeter Capital Management.
It was reported last month that Jaya Grocer’s founder — the Teng family — has bought back its entire stake in Jaya Grocer from Singapore-based private equity firm AIGF Advisors Pte Ltd sponsored by Mitsubishi Corp.
AIGF, however, did not disclose the details about the valuation of the deal. The sale will give the Teng family ownership of the entire shareholding of Jaya Grocer, and allow them the flexibility to implement their strategic plans for their consolidated shareholding, the report said then .
