Singapore investment holding company – Mercurius Capital has reportedly acquired Songmart Holdings in an effort to expand into the grocery business in Malaysia.
The $36 million acquisition involving Catalist-listed company which focuses on property development and investment – Mercurius, and Malaysia’s convenience stores operator – Songmart, is an effort to drive the group towards long-term sustainability.
Chang Wei Lu, Mercurius’ executive chairman and CEO confirmed that the strategic Chang Wei Lu, Mercurius’ executive chairman and CEO confirmed that the strategic acquisition will provide a platform for the group to diversify from their planned hospitality business in Thailand which has been progressing slowly due to the uncertainties brought about by the Covid-19 pandemic. By diversifying into the more defensive groceries business in Malaysia, the organisation hopes to propel and transform the group towards long-term sustainability.
Upon acquisition, Songmart will then act as a special purpose vehicle (SPV) that will acquire Granville Grocery, another Malaysia-based company whose business is the operation of department stores, supermarkets and retail sales of other food products.
The acquisition of Songmart will be satisfied with the issuance of 200 million new ordinary shares in the capital of Mercurius at 18 cents per share in three tranches.