Webuy Global Announces MOU to Acquire PT. Tiga Sakti Utama (TSU), a Leading Indonesian Fruit Importer and Wholesaler in Surabaya, Indonesia
06 Diciembre 2023 - 7:30AM
Webuy Global Ltd (Nasdaq: WBUY) (“Webuy” or the
“Company”), 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 (“MOU”) to
acquire controlling interest in PT. Tiga Sakti Utama (“TSU”), a
leading 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.”
About Webuy Global Ltd
The Company’s mission is to make social shopping
a new lifestyle for consumers and to empower consumers’ purchases
with an efficient, cost-saving purchasing model. Webuy is committed
to developing a community-oriented e-commerce platform in the
Southeast Asia region and transforming the e-commerce model into a
community-driven experience for consumers.
The Company's innovative “group buy” business
model is set to revolutionize traditional shopping practices,
offering substantial cost savings to customers through a
community-centric approach. This approach, akin to group purchases
and bulk orders, simplifies the process for customers and
eliminates the need for individual bulk purchases. Furthermore, the
business model streamlines the traditional supply chain by
minimizing the involvement of intermediaries, thereby offering a
more direct "farm-to-table" supply model. Additional information
about the Company is available at http://webuy.global/
Forward-Looking Statements
This press release contains forward-looking
statements regarding the Company’s current expectations. These
forward-looking statements include, without limitation, references
to the Company’s expectations regarding the anticipated use of net
proceeds from the offering. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties
and assumptions that are difficult to predict. Factors that could
cause actual results to differ include, but are not limited to,
risks and uncertainties related to the satisfaction of customary
closing conditions related to the public offering, or factors that
result in changes to the Company's anticipated use of proceeds.
These and other risks and uncertainties are described more fully in
the section captioned "Risk Factors" in the Company’s Registration
Statement on Form S-1 related to the public offering (SEC File No.
File No. 333-271604). Forward-looking statements contained in this
announcement are made as of this date, and the Company undertakes
no duty to update such information except as required under
applicable law.
Contact:Crescendo
Communications, LLCTel: 212-671-1020Email:
wbuy@crescendo-ir.com
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