THE SM Group has confirmed a plan to acquire a controlling stake in the Ortigas family’s holding company, which owns prime mixed-use developments in Metro Manila including the Greenhills shopping complex.

“We confirm that SM Group is in the process of discussion for the acquisition of majority interest in 

Ortigas Holdings Inc. The amount and details of the transaction are still under discussion and subject to finalization,” a disclosure by SM Prime Holdings Inc. showed.

The announcement came after a published report said the Sy family is finalizing a deal to acquire Ortigas-led OCLP Holdings Inc. for $1 billion after shareholders including Ortigas clan members and HSBC agreed to the transaction.

The Sy family’s main retail, shopping mall, banking and property development businesses in the Philippines are held through listed SM Investments Corp. (SMIC), which also confirmed talks.  

“But we cannot disclose any details yet. Everything is still under discussion at this point,” Corazon  Guidote, SMIC vice president for investor relations, said in a phone interview on Thursday. SMIC is controlled by billionaire businessman Henry Sy and his family.

OCLP Holdings Chief Executive Officer Rowell Recinto acknowledged in a separate statement that key shareholders are “in dialogue and discussion with a prospective buyer but that a deal has not been concluded.” 

Analysts noted that the backing of the Sy family, considered the richest in the country, would help the Ortigas group in its aggressive expansion plans, including the redevelopment of Greenhills Shopping Center, estimated to cost at least P30 billion.

The company is also building and expanding mixed-use developments like Circulo Verde in Quezon City and Frontera Verde development on C-5 Road in Pasig.

The Ortigas Group, possibly through OCLP Holdings, earlier announced its intention to hold an initial public offering by the second half of 2012 to raise about $200 million. It is uncertain how the potential takeover by the SM Group would affect those plans.

In a research note, stock brokerage firm CitisecOnline said the acquisition could give the SM Group access to a vast landbank in Metro Manila, namely, in Mandaluyong, San Juan and Quezon City. “After the transaction, SM will control the lion’s share of the retail market in the Oritgas area with Megamall and Greenhills under its control,” CitisecOnline said.

SMIC shares declined 0.72 percent to P687 each on Thursday, giving the conglomerate a market value of P420.79 billion.