Webuy Global Ltd (NASDAQ: WBUY) shares are experiencing a notable surge in the current trading session. At the latest examination, the value of Webuy stocks exhibited a remarkable uptick of 30.91%, reaching $7.79 on the stock market. This ascent in WBUY stock value is attributed to a recent strategic development, specifically an acquisition announcement made today.
Webuy (WBUY) has formally declared its intention to acquire a controlling interest in PT. Tiga Sakti Utama (“TSU”), as outlined in a non-binding Memorandum of Understanding (“MOU”). TSU, headquartered in Surabaya, Indonesia, stands as a prominent importer and wholesaler of fruits. Per the terms of the MOU, Webuy is set to secure a 51% equity stake in TSU by offering 800,000 of its ordinary shares, subject to specific lockup arrangements.
The finalization of this acquisition hinges on the execution of a definitive agreement, contingent upon thorough due diligence and ongoing discussions surrounding customary closing conditions. Both parties anticipate reaching a conclusive agreement by mid-2024. In the unaudited financials for 2022, TSU recorded an approximate revenue of $15 million and has maintained profitability since its inception in 2021.
Recognized as the “gateway to the East,” Surabaya holds significance as the commercial capital of eastern Indonesia, acting as a pivotal trade and logistics hub for the region. This proposed acquisition seamlessly aligns with Webuy’s overarching strategy to establish itself as a key participant in Indonesia’s flourishing fruit market, which encompasses a population nearing 300 million.
Furthermore, Surabaya’s strategic location positions it as a key geographical foothold to facilitate Webuy’s expansion initiatives across Southeast Asia. Leveraging TSU’s established leadership position, Webuy envisions substantial potential in this strategic move, solidifying its presence in the region. Anticipating significant operational advantages and economies of scale, Webuy will provide updates on the progress of the acquisition as it unfolds.
Collaborating with TSU will enable Webuy to extend its offline footprint in the agricultural and food markets of Southeast Asia. Through this synergistic partnership, the companies aim to emerge as leading entities in import, wholesale, and retail operations within Indonesia, asserting dominance in the broader regional landscape.
