By Jenniffer
B. Austria | Posted on Aug. 12, 2013 at 12:01am | manilastandardtoday.com
Majority of
the shareholders of SM Development Corp. and Highlands Prime Inc. agreed to
exchange shares for the bigger, expanded and consolidated SM Prime Holdings
Inc.
SM Prime
chief finance officer Jeffrey Lim said in an interview nearly 99 percent of
Highlands Prime shares and 98 percent of SM Development stocks were tendered
during an offering period that ended
Aug. 2, 2013.
SM Land Inc.
made the tender offer as part of the planned consolidation of the companies
owned by the family of retail tycoon Henry Sy under SM Prime Holdings Inc.
A total of
7.146 million shares owned by SM Prime, SM Development and Highlands Prime
worth P64 billion will be crossed today at the Philippine Stock Exchange to
formalize the exchange of shares.
The
acquisition of SM Development and Highlands Prime shares is the first step in
the planned merger of the Sy family’s property assets.
Under the
terms of the tender offer, SM Land is offering SM Prime shares for SM
Development and Highlands Prime stocks.
SM
Development shares were exchanged for 0.472 SM Prime share while every stock of
Highlands Prime was swapped for every 0.135 of SM Prime share.
After the
completion of the exchange offers, the second step of consolidation involves
the merger of SM Land with SM Prime, with the latter as the surviving entity.
SM Prime will
then acquire specific real estate companies and assets currently held by
holding company SM Investments Corp. in exchange for new shares in SM Prime.
One of the assets to be acquired is the 60-hectare Mall of Asia complex in
Pasay City.
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