The Securities and Exchange Commission (SEC) has approved the merger of SM Land Inc. with SM Prime Holdings Inc., which will pave the way for the Henry Sy-led conglomerate’s plan to create a real estate company with the largest market capitalization in the country, amounting to $14 billion.
In a filing with the Philippine Stock Exchange on Friday, SM Prime disclosed that it has obtained regulatory approval for its merger with SM Land.
Also, the SEC approved the increase in the authorized capital stock of SM Prime by P20 billion.
Specifically, from P20 billion consisting of 20 billion common shares with a par value of P1 each share, the country’s largest mall developer will now have an authorized capital stock of P40 billion, consisting of 40 billion common shares with a par value of P1 each share.
Lastly, the commission also gave its approval for the change of the corporation’s primary purpose to a mixed-use real property developer.
The go-signal from the SEC came more than four months after the SM Group, the business empire of the Philippine’s richest man, announced that it decided to merge its property businesses into one real-estate giant firm, with SM Prime as the surviving entity.
Henry Sy Jr., SM Prime chair-man, said that the integration of the group’s property businesses will give them scale, right organization, agility and resources to take advantage of the strong Philippine economy.
In the enlarged SM Prime, the company can expect 60-percent growth in net income, as well as eight times growth in its landbank.