KUALA LUMPUR: Southeast Asia's largest ride-hailing company Grab is buying Jaya Grocer Holdings Sdn Bhd, a leader in the premium grocery segment in Malaysia, for an undisclosed amount.
Singapore-based Grab, in a filing to the Nasdaq today, said it had entered into a share purchase agreement (SPA) with the current shareholders of Jaya Grocer to buy all of the ordinary shares and 75 per cent of the preference shares of Jaya Grocer.
Grab, which made its debut on the Nasdaq following a US$40 billion merger in a special purpose acquisition company deal, said Jaya Grocer operated 40 stores across Peninsular Malaysia, with the majority being located in the Klang Valley.
Subject to certain terms, Grab said it would have the option to buy the remaining 25 per cent of the preference shares of Jaya Grocer after the closing of the transaction.
"For local regulatory purposes, Grab Holdings Ltd (GHL) intends to partner with a local investor which will own 50 per cent 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. Following closing, Jaya Grocer is expected to become a subsidiary of GHL and its financial results will be consolidated by GHL," it added.
Late last month, Jaya Grocer's founder, the Teng family, reportedly had bought back its entire stake in Jaya Grocer from AIGF Advisors Pte Ltd.
AIGF had said 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 and working alongside them to enhance the value of their businesses, to create leaders in their respective industries.
During the investment period, Jaya Grocer had expanded organically from just over 10 stores to more than 40 today, it added.