Grab makes a deal to buy more shares in Jaya Grocer Malaysia – Wired PR Lifestyle Story

On December 11, 2021, a subsidiary of Grab signed a share purchase agreement (SPA) with current shareholders of Jaya Grocer. It wants to acquire all of Jaya Grocer’s common stock and 75% of Jaya Grocer’s preferred stock.

This is according to a file filed by the United States Securities and Exchange Commission (SEC).

Stock Glossary

Common shares ordinary shares (also called ordinary shares) represent the proportional ownership of a company. Meanwhile, preferred shares ordinary dividends to shareholders are the shares of the shareholders who are paid before they are issued.

A SPA is subject to a merger and acquisition (M&A) umbrella and is usually created when an investor acquires a business in whole or in part.

So to put it bluntly, Grab is basically buying more than Jaya Grocer and earning 75% of his profits.

Under certain conditions, Grab will be able to buy 25% of Jaya Grocer’s preferred shares after closing the transaction. For local regulatory purposes, Grab is collaborating with a local investor who will own 50% of Jaya Grocer’s voting stock.

The closure of the SPA is subject to normal conditions and is currently expected to occur in the first quarter of 2022. Following the closure, Jaya Grocer will become a subsidiary of Grab and will consolidate its financial results with Grab.

Gaining more market share

For context, it was Grab recently listed on the Nasdaq In December 2021, it was finally marketed at a valuation of about $ 40 billion, raising $ 4.5 billion in the process.

Meanwhile, he had Jaya Grocer as reported Asean Industrial Growth Fund (AIGF) bought all its shares in November 2021. It happened after the first reports in May that the grocery store was scheduled to go public.

Jaya Grocer is a leader in the Malaysian premium food segment and has 40 stores across West Malaysia, most of which are located in the Klang Valley.

Although not much is known about this SPA yet, it can be predicted that it will strengthen Grab’s position. Malaysia’s most powerful super app.

We contacted Grab to check the above information and find out more, and a Grab representative told the Vulcan Post:

“Grab and Jaya Grocer can confirm that the two companies have reached an agreement where Grab will buy a partial stake in Jaya Grocer. It is subject to the usual terms of closing the deal, and we cannot share further details at this stage.”

• Read other articles we’ve written about Grab here.

Featured Image Credit: Grab / Jaya Grocer