SM Group 'studying' merger of mall, property units

Posted at 02/20/13 10:31 AM

MANILA, Philippines (UPDATE) - SM Prime Holdings, Inc. on Wednesday said a merger with other property units under the SM Group is indeed a possibility.

In a disclosure, the Henry Sy-led firm confirmed a news report that said the SM group is "studying" merging SM Prime Holdings with the property businesses under the SM Group.

The company did not elaborate further.

Shares of SM Prime Holdings rallied to P20.30 apiece on Wednesday morning, up 5.2% from its P19.28-close on Tuesday.

Shares of SMDC, meanwhile, were last traded at P9.25 apiece, 8.6% higher than its P8.52-finish the previous day.

SM Prime Holdings develops and manages the group's commercial shopping centers.

Real estate assets, meanwhile, are handled through SM Land Inc., which has has three segments: SM Development Corp. (residential), Commercial Properties Group (commercial), and Costa del Hamilo (leisure).

The group also dabbles in high-end residential properties in Tagaytay through Highlands Prime Inc.