SY family-led SM Investments Corp. (SMIC) said Tuesday that its board of directors had greenlit the property-for-share swap with its subsidiary Intercontinental Development Corp. (ICDC).
“The respective board of directors of the SMIC and ICDC deemed it necessary and advisable to enter into the transaction for optimal utilization and development of the properties and to align with their respective broader business strategies,” SMIC said in a filing with the stock exchange.
The transaction, wherein SMIC will be acquiring ICDC land in exchange for its new common shares, was approved by its board on August 7, subject to regulatory approvals.
“The assets for acquisition comprise approximately 184 hectares of land owned by ICDC in Susana Heights in Muntinlupa City,” SMIC said, with the shares to be issued from its authorized and unissued capital stock.
The total value of the transaction is yet to be confirmed by the Securities and Exchange Commission.
“SMIC will increase its real estate assets through the acquisition of the properties and issue new SMIC shares as consideration,” the firm noted, adding that there is no material effect on the business, financial condition and operations of SMIC.
SMIC reported a consolidated net income of P40.2 billion for the first half of 2024, up by 10 percent on the back of higher retail sales and improvement of its bank and property portfolios.
“SM’s double-digit growth in the first half results reflects a positive environment for our businesses. Improved discretionary spending in the second quarter lifted retail sales, while our banks, property and portfolio investments continued to deliver,” SMIC President and Chief Executive Officer Frederic DyBuncio said.
“We remain cautiously optimistic for the balance of the year,” he added.
On Tuesday, SMIC shares rose by P5.00 to close at P930 each.
Be the first to comment