Philippine-listed SM Investments Corp (SM) has received approval from the Securities and Exchange Commission for the merger of all its retail businesses.
The company disclosed the SEC signed the certificate of merger last Wednesday.
Under the terms of the deal, over 1,300 retail outlets will be folded into SM’s retail arm the SM Retail Inc in exchange for shares of stock of the latter’s expanded net assets.
The merger includes SM Retail’s affiliates Forsyth Equity Holdings Inc, HFS Corp, Morrison Corp, San Mateo Bros Inc, and Tangiers Resources Corp. They will all be merged into one entity – SM Retail.
The Sy family-owned specialty stores include wide-ranging portfolio of local brands such as Ace Hardware, Watsons, Toy Kingdom, SM Appliances, Our Home, Baby Company, Kultura, Sports Central, Pet Express and other specialty retailers.
“The merger is seen to be both value and earnings accretive given the stores’ competitive position, synergies with SM Supermalls and strong growth potential,” SM Investments said in its statement.
Macquarie Capital was the appointed advisor of SM for the merger.
SM is one of the larger publicly listed companies in the Philippines with businesses across sectors like banking, property and retail.
The company’s non-food retail operations are clubbed under The SM Store, while the food related retail comes under the SM Markets – comprising of SM Supermarket, SM Hypermarket, and Savemore and other food retail stores under Waltermart and Alfamart.
SM last traded at P999.00 since yesterday.