Sy Group buying minority stakes in companies abroad

MANILA, Philippines — The Sy Group is looking to acquire minority stakes in foreign companies, according to regulatory filings of listed conglomerate SM Investments Corp. (SMIC).

However, it is not clear yet which industries SMIC is eyeing to invest in but in recent years, the company has ventured into industries outside of its usual businesses including shipping and energy.

In a disclosure yesterday, SMIC said that its planned investments would be coursed through a Singapore-incorporated company.

SMIC received confirmation on the incorporation of SMIC SG Holdings Pte. Ltd. under the laws of Singapore.

SMIC SG Holdings Pte. Ltd.  is a newly incorporated company, 100 percent owned subsidiary by SMIC. The company was incorporated as an investment holding company for potential minority stakes in foreign companies.

SMIC’s businesses include retail, property and banking. Its retail subsidiaries are The SM Store, SM Supermarket, SM Hypermarket, SaveMore, Walter Mart Supermarket Inc., and Alfamart while its property giants are SM Prime Holdings Inc. and SM Development Corp. and its financial services are BDO Unibank Inc. and China Banking Corp.

In recent years, SMIC has also been stepping up its sustainability efforts and overall environmental, social, and corporate governance or ESG.

Last April, SMIC announced that it was strengthening its presence in the geothermal sector, raising its stake in Philippine Geothermal Production Co. Inc. (PGPC) to 100 percent from just P15.7 billion.

PGPC operates the Tiwi and Mak-Ban steam fields in Albay and Laguna and Batangas.

In a disclosure, SMIC said it approved the acquisition of the 81 percent stake from related parties in Allfirst Equity Holdings Inc (Allfirst), which operates the Tiwi and Mak-Ban steam fields.