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Business

SM Prime raises P18 B from treasury shares

The Philippine Star

MANILA, Philippines - SM Prime Holdings, the integrated property development arm of the SM Group, has raised P18 billion in fresh capital to partly finance its proposed buyout of the Fernando Ortigas bloc in OCLP Holdings Inc. through the sale of shares held in its treasury.

In a disclosure to the local bourse, SM Prime said it sold 1.06 billion common shares held in treasury “at prevailing market prices” or at P17 apiece.

“The transaction involved a successful overnight bookbuilding process, which saw strong interest from high quality institutional investors in Asia, Europe and the United States,” SM Prime said.

JP Morgan Securities Plc and Macquarie Capital Securities (Singapore) Pte. Ltd served as joint bookrunners, while BDO Capital & Investment Corp. acted as the domestic lead manager for the placement.

The firm, led by banking and retail tycoon Henry Sy, said proceeds raised from the placement would partially fund the company’s capital expenditures, general corporate purposes, and potential acquisitions, including the recently announced partnership in OCLP Holdings.

OCLP is the holding company of Ortigas & Co., owners of strategic landbank and properties in key cities around Metro Manila. Its well-known developments include the Greenhills Shopping Center in San Juan and Tiendesitas in Pasig City.

In early November, SM Prime and Ayala Land Inc. put an end to a two-year long rivalry over the Ortigas family’s holding firm as the two property giants entered into a partnership with their respective faction in the Ortigas clan.

The Fernado Ortigas party allied with the SM Group is reportedly planning to sell its entire stake in OCLP Holdings. But SM Prime has said details of the proposed buyout are still being threshed out.

       

EUROPE AND THE UNITED STATES

FERNADO ORTIGAS

FERNANDO ORTIGAS

GREENHILLS SHOPPING CENTER

HENRY SY

HOLDINGS INC

INVESTMENT CORP

METRO MANILA

MORGAN SECURITIES PLC AND MACQUARIE CAPITAL SECURITIES

PASIG CITY

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