SEC approves 'mega-merger' of SM property units
MANILA, Philippines - The Securities and Exchange Commission (SEC) approved the merger between SM Prime Holdings and SM Land Inc.
The "mega-merger" will create the country's largest property company by market capitalization and one of the biggest in Asia.
In a disclosure to the stock exchange, SM Prime said the SEC also approved the amendment to its articles of incorporation to increase the authorized capital stock by P20 billion to P40 billion. This consists of 40 billion common shares with a par value of P1 per share.
The SEC also allowed the change in SM Prime's primary purpose to "mixed-use real property developer."
SMPH is also allowed to issue common shares for the merger with SM Land; shares for shares in various real estate companies; and share of common stock to SM Investments in exchange for various real estate properties.
SM Land had earlier completed the acquisition of shares in SM Development Corp and Highlands Prime Inc. In exchange, the two companies will get shares in SMPH.
The move is part of Henry Sy-led's SM group's consolidation of its property businesses under SMPH.
The combined current market capitalization of these Sy property firms is estimated at P591 billion.