July 02, 2013

SM unit extends tender offer period

The  SEC said it approved the petition of SM Land to extend the tender offer of SM Development Corp. (SMDC) and Highlands Prime Inc. (HPI) to Aug. 2 from the original deadline of July 9. The request was made “to give more time to SMDC shareholders to tender their common shares,” SEC said.

SM Land plans to acquire 34.82% or 3.228M shares of SMDC and 100% or 2.246 M shares of HPI through a tender offer that started on June 4. As of June 24, only 11.45% and 66.22-percent common shares of SMDC and HPI were bought from minority stockholders, respectively.

Late in May, SMIC announced the merger of its real estate businesses, creating the most valuable property firm in the Philippines. The transaction involves several steps. First, private firm SM Land will acquire upscale Tagaytay Highlands developer HPI and residential builder SMDC in exchange for shares in mall operator SM Prime Holdings Inc.

SM Land will then merge with SM Prime, which will be the surviving entity. SM Prime will also acquire specific real estate companies and assets currently held by SMIC like the SM Mall of Asia complex, Pico de Loro and SM Hotels and Conventions Corp.

The transformed SM Prime will have P284 B in current assets from P148 B, revenues of P58.4 B from P30.7 B, net income of P17  B from P10.9  B and total landbank of 920 hectares from 110 hectares. - WealthSec