shopper360 to invest RM2.4m in Malaysia's PB Grocery Group

MALAYSIAN marketing company shopper360 Limited, through its wholly-owned subsidiary shopper360 Sdn Bhd, has proposed an investment of RM2.4 million (S$781,000) in PB Grocery Group. The sum will be in exchange for 152,356 new shares, or 8 per cent of the company's total issued shares.

PB Grocery Group is the owner of Potboy, an e-commerce grocery platform which links fast-moving consumer goods (FMCG) companies with eateries and provision shops in Klang Valley and Seremban.

The grocery group will be using part of the funds to purchase a landed property for its operating warehouse, with the rest to be used as working capital for its business expansion.

The amount will be paid in two instalments and funded through shopper360's internal resources, the company announced on Tuesday.

According to the company's board, the investment can help shopper360's FMCG customers grow their sales through additional distribution touchpoints provided by PB Grocery. It also foresees Potboy expanding in the near future, allowing shopper360 to later exit from its PB Grocery investment with a positive rate of return.

shopper360's investment in PB Grocery is the second time this month that a Singapore-listed company has proposed an investment into Malaysia's grocery market.

Earlier in the month, Catalyst-listed Mercurius Capital Investment announced a proposed acquisition of 10 groceries businesses in Malaysia for S$36 million.

The announcement came after the company released its independent auditor's report containing a disclaimer of opinion highlighting losses and significant liabilities which "cast doubt" on the group's ability to continue as a going concern.