Shoemart Inc completes P5.2-B tender offer for SM Dev’t Corp

Shoemart Inc., the property holding firm of retail tycoon Henry Sy Sr., has completed its tender offer to acquire 35.3 percent of affiliate SM Development Corp. for P5.2 billion, raising its stake in the company to 51 percent.

Shoemart purchased 1.31 billion shares of SMDC at P3.95 each.

The tender offer which started on Oct. 16 was part of the SM Group’s strategy to consolidate all its real estate businesses under Shoemart to simplify structure and enhance operational efficiency.

In its disclosure to the Philippine Stock Exchange, Shoemart said negotiations have likewise began for its purchase of the remaining 1.8 billion shares or 49 percent stake in SMDC currently held by SM Investments Corp. The deal will be carried out through a share swap similar to the terms of the tender offer.

SMDC shares closed unchanged at P3.95 yesterday while SMIC went up P15 or 4.5 percent to close at P345.

Other real estate assets expected  to be folded into Shoemart include Highlands Prime Inc., the upscale property development firm of the Sy group, and Hacienda Looc in Nasugbu, Batangas, the group’s first resort tourism project.

Shoemart is aiming to secure leadership across four major real estate sectors which include residential and condominium development, commercial development, leisure and tourism and hotel investment.

The SM Group has a landbank of over 7,000 hectares across  the country which it plans to develop to capitalize on the booming property sector, robust remittances from overseas Filipino workers, and the rising number of tourists.

It also intends to take advantage of the growing number of SM shopping malls which would serve as the anchor for the conglomerate’s other property ventures.