The target grocery businesses, located in Johor, encompass Tan Lee Heng, Pasaraya Songmart (Kluang), Pasaraya Songmart (Kulaijaya), Pasaraya Songmart (Kota Tinggi), Pasaraya Songmart (Pulai Perdana 2, Pasaraya Songmart (Sri Stulang), Pasaraya Songmart (Bandar Tenggara), Pasaraya Songmart (Chellam), Songmart Cash & Carry, and Granville Grocery.
The purchase consideration of $36 million shall be paid by Mercurius through the allotment and issue of 200 million new ordinary shares in Mercurius at an issue price of 18 cents per share.
SEE:Mercurius share price surges more than 40%, triggers SGX query
The shares will be issued in tranches, with the first tranche upon completion of the proposed acquisition and subsequent tranches shall be paid to the vendors based on the achievement of certain profit targets and milestones.
A definitive sale and purchase agreement is expected to be signed within 90 working days from the date of the term sheet.
In a filing to the Singapore Exchange (SGX) dated April 9, Mercurius states that the proposed acquisition is in line with the company’s intention to seek business opportunities and generate new revenue streams.
In addition, the company states that the target group provides the company an opportunity to acquire profitable entities and would “hopefully be earnings accretive with opportunities for growth”.
As at 9.27am, shares in Mercurius are up 1.3 cents or 20% higher at 7.8 cents.
