By Jenniffer
B. Austria | Posted on Aug. 10, 2013 at 12:03am | manilastandardtoday.com
SM Prime
Holdings Inc. expects to complete the acquisition of Walter Mart Malls in
September, a company executive said Friday.
SM Prime chief
finance officer Jeffrey Lim said the company was set to acquire 51 percent of
Walter Mart Malls, which operates 17 community malls. The two parties are discussing the final cost
of the acquisition, according to Lim.
Walter Mart
operates 17 shopping centers in Central Luzon, Metro Manila and Calabarzon.
SM Retail
earlier completed the acquisition of a 51-percent stake in Walter Mart
Supermarket for P3.57 billion. Walter
Mart Supermarket is now a subsidiary of SM Retail, after the transaction was completed,
based on the filing of SM with the stock exchange.
SM Prime and
SM Retail signed joint venture agreement with the Walter Mart Group of
Companies in January to boost the group’s retail business, which is facing
stiff competition from the aggressive expansion of Puregold Price Club Inc. of
taipan Lucio Co.
Walter Mart,
owned by the Lim family, is the first community shopping center format in
Southern Luzon. Its 17 community malls are strategically located in Batangas,
Laguna, Cavite, Metro Manila, Bulacan, Pampanga and Nueva Ecija.
The Lim
family also owns Abenson, a chain of appliance stores with over 75 outlets
nationwide. It owns a concept store
called Avant, which carries the latest high-end technology products currently
available in the market, as well as Electroworld and Home Plus.
SM Retail has
229 retail stores, consisting of 46 SM department stores, 37 SM supermarkets,
38 SM hypermarkets, 86 SaveMore stores and 21 Waltermart supermarkets as of
end-June.
SM Retail’s
revenues grew 6.4 percent to P83.6 billion in the first half from P73.8 billion
in the same period last year, following the acquisition of Waltermart
Supermarket and opening of new stores.
The non-food
group accounted for 40.9 percent of SM Retail’s first half sales while the food
group contributed the remaining 59.1 percent.
SM Retail
plans to add more one department store, one supermarket, 11 SaveMore branches
and six hypermarkets in the second half.
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