Mercurius proposes acquisition of 10 Malaysian grocery businesses

CATALIST-LISTED Mercurius Capital Investment on Friday morning announced a proposed acquisition of 10 groceries businesses in Malaysia for S$36 million.

The stores include Tan Lee Heng; Songmart Cash & Carry; Granville Grocery; and seven Pasaraya Songmart branches located in Kluang, Kulaijaya, Kota Tinggi, Pulai Perdana 2, Sri Stulang, Bandar Tenggara and Chellam.

The company entered into a term sheet with the vendors on April 8 and expect to sign a definitive agreement within the coming 90 days.

Mercurius will pay the store owners by way of an allotment and issue of 200 million new ordinary shares at an agreed price of S$0.18 per share.

According to Mercurius, the acquisition is expected to diversify its business portfolio and revenue stream.

Mercurius requested a trading halt on Tuesday morning and lifted the halt before the market opened on Friday.