Mercurius to proceed with completion of acquisition of Malaysian groceries business

Felicia Tan
Felicia Tan10/17/2022 07:08 PM GMT+08  • 2 min read
Mercurius to proceed with completion of acquisition of Malaysian groceries business
The completion of the acquisition will take place by no later than Oct 31, says Mercurius. Photo: Mercurius
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Mercurius Capital Investment, on Oct 17, entered into a third supplemental agreement to the share sale agreement (SSA) with Songmart Holdings’ shareholders.

Mercurius, on April 8, 2021, entered into a legally binding term sheet with Songmart’s shareholders, where the former proposed to acquire Songmart for a consideration of $36 million. The acquisition was meant to help the company find a new earnings stream as the pandemic hits hospitality industries worldwide.

On July 12, 2021, Mercurius entered into an SSA with the shareholders of groceries business Songmart Holdings, where Mercurius acquired all of the shares in the special purpose vehicle (SPV) under which Songmart’s businesses and employees would be consolidated and owned.

As the conditions have not been fulfilled by the latest long-stop date of Aug 31, the parties have agreed to deem them all fulfilled under the third supplemental agreement. As such, the parties will proceed with the completion of the proposed acquisition.

The conditions will still have to be fulfilled by Songmart’s shareholders following the completion of the acquisition.

The completion of the acquisition will take place by no later than Oct 31, says Mercurius.

See also: Mercatus divests 50% indirect stake in Nex for $652.5 mil

The conditions in question include the approval from the Malaysian Labour Department to Songmart Malaysia Sdn Bhd (SMSB) in relation to the transfer of foreign workers to SMSB, and the endorsement reflecting SMSB as the new employer of the foreign workers on the existing work permits of the respective foreign workers.

Other conditions include SMSB obtaining a certificate of accommodation in respect of the certain accommodation units provided to its foreign workers.

Shares in Mercurius closed 0.1 cent higher or 2.5% up at 4.1 cents on Oct 17.

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