Grab Is Acquiring Jaya Grocer After Being Listed On Nasdaq 2 Weeks Ago

[kobayashiGT]

E-hailing and food delivery super-app Grab is acquiring Malaysia's premium grocery chain Jaya Grocer, according to a filing to the US Securities and Exchange Commission (SEC)

New Straits Times reported that Grab did not disclose how much it is offering to buy Jaya Grocer.

However, sources claimed that the largest ride-hailing company in Southeast Asia is forking out RM1.5 billion to RM1.8 billion to buy the grocery chain, according to The Edge Markets.

Based on the filing to SEC, it is understood that Grab had entered into a share purchase agreement (SPA) with the current shareholders of Jaya Grocer to buy all of the ordinary shares and 75% of the preference shares of Jaya Grocer.

"Subject to certain terms, the GHL (Grab Holding Limited) subsidiary will have the option to buy, and the current shareholders will have the option to sell to the GHL subsidiary, the remaining 25% of the preference shares of Jaya Grocer after the closing of the transaction," read the filing.

"For local regulatory purposes, GHL intends to partner with a local investor which will own 50% of the voting shares in Jaya Grocer."

The closing of the deal is expected to occur in the first quarter of 2022 after the customary conditions are met

"Following closing, Jaya Grocer is expected to become a subsidiary of GHL and its financial results will be consolidated by GHL," it said.

Grab's share price remains at USD7.20 at the time of writing as it is after-market hours in the US.

Grab had on 2 December listed on Nasdaq, a dealer stock market in New York, US

The former Malaysian start-up became the largest listing in the US by a Southeast Asian company, reported The Star.

Grab was founded by Malaysian Harvard graduates Anthony Tan and Tan Hooi Ling. Its first name was called MyTeksi, before changing to Grab on 28 January 2016.

Currently, the super-app company is headquartered in Singapore.

As for the history of Jaya Grocer, the company's first outlet was opened in 2007.

It was founded by Teng Yew Huat, who is also known for founding Giant Hypermarket.

According to New Straits Times, the Teng family reportedly bought back Jaya Grocer's entire stake from AIGF Advisors Pte Ltd, a private equity firm headquartered in Singapore.

The sale in November gave the Teng family ownership of the entire shareholding of Jaya Grocer, reported The Edge Markets.

AIGF said on 24 November that its investment in Jaya Grocer back in 2016 was part of the fund's strategy of identifying and investing in companies with strong potential as it wanted to work alongside them to enhance the value of their businesses and to create leaders in their respective industries.

During the investment period, Jaya Grocer expanded from just over 10 stores to more than 40 today.

Quote

After listed, grab is on a buying spree ah??? 😈

The full ownership gives them the flexibility to implement their strategic plans for their consolidated shareholding.

[Lala81]

They need to show they can be profitable. Very likely they will follow the Lazada/redmart and amazon/whole foods partnerships. Marry digital wallet with groceries in Malaysia in the major cities. 

Their core business is nowhere near profitable. So use the capital raised to buy profitable biz that fit their strategic plans. 

 

Edited December 16, 2021 by Lala81

[Inlinefour]

grab more GCB 

 

Huat Ah

 

🤑🤑🤑

[dragonballdidi]

will they buy sheng siong in SG too? 🤠

[Wt_know]

On 12/16/2021 at 11:15 AM, Inlinefour said:

grab more GCB 

 

Huat Ah

 

🤑🤑🤑

just flip a few GCB in sinkieland = double confirm profitable balance sheet ... muahahaha

like many tech companies are putting BTC in their balance sheet liao ... lol

Edited December 17, 2021 by Wt_know

[Inlinefour]

35 minutes ago, Wt_know said:

just flip a few GCB in sinkieland = double confirm profitable balance sheet ... muahahaha

like many tech companies are putting BTC in their balance sheet liao ... lol

Dun let da pussy outta da panty 

 

wait picah lobang 🤣🤣🤣

[Stary]

50 minutes ago, Wt_know said:

just flip a few GCB in sinkieland = double confirm profitable balance sheet ... muahahaha

like many tech companies are putting BTC in their balance sheet liao ... lol

Err...bro....I think "other investments'" and "operating margins" are two different lines in the P&L....😄

[Stary]

On 12/16/2021 at 10:54 AM, Lala81 said:

They need to show they can be profitable. Very likely they will follow the Lazada/redmart and amazon/whole foods partnerships. Marry digital wallet with groceries in Malaysia in the major cities. 

Their core business is nowhere near profitable. So use the capital raised to buy profitable biz that fit their strategic plans. 

 

I think another asset they can get from a grocer store is the customer database. It is their target customer profile. From the customer spending patterns, they can also cross-sell and push other Grab products to the customer.

Data is the new oil that fuels everything.

 

Edited December 17, 2021 by Starry