Webuy Global Announces MOU To Acquire PT. Tiga Sakti Utama, A Leading Indonesian Fruit Importer And Wholesaler In Surabaya, Indonesia; Co Would Receive A 51% Equity Interest In TSU In Exchange For 800K Of The Co's Shares With Certain Lockup Arrangement
Portfolio Pulse from Benzinga Newsdesk
Webuy Global Ltd (NASDAQ:WBUY) has announced a non-binding MOU to acquire a 51% stake in PT. Tiga Sakti Utama (TSU), an Indonesian fruit importer and wholesaler. The deal involves an exchange of 800,000 Webuy shares for the equity interest, with a lockup arrangement. TSU, profitable since 2021, generated $15 million in sales in 2022. The acquisition aims to expand Webuy's presence in Indonesia and Southeast Asia, leveraging Surabaya's strategic location. A definitive agreement is expected by mid-2024, subject to due diligence and closing conditions.
December 06, 2023 | 1:33 pm
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Webuy Global Ltd is set to acquire a 51% stake in TSU, a profitable Indonesian fruit importer with $15M in 2022 sales, to strengthen its market position in SE Asia.
The acquisition of TSU is likely to be viewed positively by investors as it represents a strategic expansion into a profitable market, potentially leading to increased revenue and market share for Webuy. The deal could also provide operating leverage and economies of scale. However, the impact is somewhat tempered by the fact that the agreement is non-binding and subject to further due diligence, with a definitive agreement expected only by mid-2024.
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