SM Investments allots P2B for new supermarts

SM Investments Corp. (SMIC), the investment holding firm of retail tycoon Henry Sy, is setting aside P2 billion next year for the establishment of two to three supermarkets, four hypermarkets and three department stores.

This was revealed by SMIC after it secured the Securities and Exchange Commission’s nod on its plan to acquire 28 SM Supermarkets and nine SM Hypermarkets in a share-swap deal valued at P13 billion.

Under the plan, SMIC will issue 56 million new shares, representing 9.6 percent of its expanded capital, to Supervalue Inc. and Super Shopping Markets Inc.

Supervalue is the corporate vehicle of the SM Group’s SM Supermarkets while Super Shopping handles all the hypermarkets of the group.

SMIC president Harley Sy said the infusion of the supermarket and hypermarket businesses into the holding firm’s books, will enhance shareholder value, further boost the group’s profitability and expand the number of shares outstanding of SMIC to 586 million.