Southeast Asian ride-hailing and food-delivery giant Grab is to acquire Malaysian grocery chain Jaya Grocer, according to a filing with the US Securities and Exchange Commission.
Under the agreement, Grab will acquire Jaya Grocer’s ordinary shares and 75 per cent of preference shares. The company also has the option to buy the remaining 25 per cent of the preference shares of Jaya Grocer after the closing of the transaction.
In addition, Grab plans to partner with a local investor which will own 50 per cent of the voting shares in Jaya Grocer. The deal, the value of which has not been disclosed, is expected to close in the first quarter of next year.
“Following closing, Jaya Grocer is expected to become a subsidiary of GHL (Grab Holdings Limited) and its financial results will be consolidated by GHL,” the company said in the filing.
The acquisition follows Grab’s IPO debut on the Nasdaq earlier this month.
Jaya Grocer was founded in 2007 by the Teng family with its first outlet opened in Petaling Jaya. It was acquired by the Asean Industrial Growth Fund in 2016. Last month, the private-equity firm sold its stake back to the Teng family.
Jaya Grocer currently operates 40 stores across Peninsular Malaysia, with the majority being located in the Klang Valley near Kuala Lumpur.