MerryMart Consumer Corp., the grocery retail chain controlled by tycoon Edgar Sia II, plans to voluntarily delist from the local bourse following the takeover bid by affiliate developer DoubleDragon Corp.

In a disclosure to the Philippine Stock Exchange, the firm said that the supermarket operator’s board approved the delisting proposal, which will be put to a shareholder vote on July 7, 2026.

The move follows a ₱758 million mandatory tender offer by DoubleDragon for MerryMart’s minority stock, aiming to consolidate the retail and real estate operations of Sia and his billionaire partner, Jollibee Foods Corp. founder Tony Tan Caktiong.

DoubleDragon is offering ₱0.48 per share for the 1.58 billion MerryMart shares held by the public, representing a 20.79 percent stake. Payment will be structured as 50 percent cash and 50 percent DoubleDragon common shares valued at ₱9.30 apiece.

Following the transaction, MerryMart will become a direct subsidiary of DoubleDragon, a move the company says will bolster its financial position by leveraging DoubleDragon’s ₱225.3 billion asset base. The ₱9.30 valuation applied to the DoubleDragon shares represents a 52 percent discount to their latest book value of ₱19.21 per share, MerryMart noted.

“Being part of the DoubleDragon ecosystem will help us streamline operations, improve cost effectiveness, and navigate economic instability,” Sia said.

The deal offers a strategic pivot for MerryMart, which has struggled to meet its aggressive expansion targets. During its 2020 initial public offering, the retailer pledged to open 600 stores by the end of 2025. It currently operates between 130 and 140 branches.

Brokerages are now urging minority shareholders to exit, noting a lack of near-term growth catalysts for the grocery chain. Abacus Securities Corp. described the transaction as a low-risk trade opportunity ahead of the June 24 settlement date, after DoubleDragon management confirmed it would absorb 100 percent of the tendered shares.

To prevent delays from insufficient unissued capital stock, Sia will personally front the necessary DoubleDragon shares before a formal capital increase.

COL Financial Group Inc. advised shareholders that selling directly on the open market is the most efficient exit option, warning that investors who reject the offer risk being locked into an unlisted company with no liquidity.

Investors cheered the consolidation plan, sending DoubleDragon shares up 7.84 percent to close at ₱11.00 in Manila trading, compared with ₱10.20 the previous day.