Webuy Global Ltd, an emerging community e-commerce retailer with a focus on grocery and travel in Southeast Asia, today announced it has entered into a non-binding Memorandum of Understanding to acquire controlling interest in PT. Tiga Sakti Utama, an importer and wholesaler of fruits in Surabaya, Indonesia. Under the MOU, the company would receive a 51% equity interest in TSU in exchange for 800,000 of the Company’s ordinary shares with certain lockup arrangement. Pending the execution of a definitive agreement between the parties, the acquisition is subject to further due diligence and ongoing discussion of customary closing conditions. The parties expect to finalize a definitive agreement in mid 2024.
TSU generated approximately $15 million in revenue (unaudited) in 2022, and has been profitable since its inception in 2021. TSU is often referred to as the "gateway to the East" because Surabaya is the commercial capital of eastern Indonesia and the region has long been a key hub for trade and logistics.
Vincent Xue Bin, Chief Executive Officer and Co-Founder of Webuy Global, stated, “This proposed acquisition aligns seamlessly with Webuy’s overarching strategy to position itself as a key player in the thriving fruit market of Indonesia, which boasts a population of nearly 300 million people. Moreover, the city of Subaya is a key geographic foothold to support our expansion initiatives across Southeast Asia. Given TSU’s established leadership position, we see immense potential for this strategic acquisition, which we believe will solidify our presence in the region. We also anticipate gaining substantial operating leverage and economies of scale through our cooperation. We look forward to providing further updates as the planned acquisition progresses.”
Harbeth Chiokarni Asan, Chief Executive Officer and Founder of PT. Tiga Sakti Utama, further noted, “We are excited to join forces with Webuy, given their track record of growth, community-oriented e-commerce platform, and expanding offline presence in the agricultural and food markets of Southeast Asia. We have a shared vision of establishing the combined companies as a leading player in import, wholesale, and retail in Indonesia, as well as a dominant force in the region.”
For more information:
Crescendo Communications
Tel: 212-671-1020
Email: wbuy@crescendo-ir.com