MANILA – The SM Group has moved a step forward in its plan to consolidate its property assets under one company.

SM Land Inc has completed the acquisition of shares of SM Development Corp (SMDC) and Highlands Prime Inc. In exchange, SMDC and Highlands Prime will get shares in SM Prime Holdings Inc.

SM Land acquired 33.72 percent of the outstanding capital stock of SMDC and 99.85 percent of Highlands Prime, according to separate disclosures to the Philippine Stock Exchange.

SM Land, which holds a 65.18 percent stake in SMDC prior to the tender offer, has raised its stake in the condominium builder to 98.90 percent.

Following the completion of the tender offer on August 2, the public float of SMDC and Highlands Prime fell to 1.1 percent and 0.15 percent, respectively. Both companies have moved to delist from the stock market for failure to comply with the bourse rule of having at least a tenth of their shares in public hands.

SM Prime, SMDC and Highlands Prime are executing a P64-billion block sale transaction today as part of the consolidation of the property-related businesses of Henry Sy and family.

The tender offer is part of a series of transactions amounting to P279 billion designed to consolidate the property companies and assets of the Sy family under one publicly listed entity, SM Prime, thereby creating the country’s biggest real estate firm.

After the offer, SM Land will then merge with SM Prime with the latter as the surviving entity. SM Prime will then acquire specific real estate companies and assets of SM Investment Corp in exchange for new shares in the mall developer.

As part of the reorganization, SM Prime is amending its primary purpose to mixed-use real property development.

SM Prime shareholders approved the consolidation and the doubling of the company’s authorized capital stock from P20 billion to P40 billion for the issuance of new shares.

The consolidated pro-forma net income of the SM property group rose 14 percent to almost P7 billion from P6.14 billion last year.

First-half revenues climbed seven percent to P31 billion this year from P28.9 billion in 2012.

MANILA – The SM Group has moved a step forward in its plan to consolidate its property assets under one company.

SM Land Inc has completed the acquisition of shares of SM Development Corp (SMDC) and Highlands Prime Inc. In exchange, SMDC and Highlands Prime will get shares in SM Prime Holdings Inc.

SM Land acquired 33.72 percent of the outstanding capital stock of SMDC and 99.85 percent of Highlands Prime, according to separate disclosures to the Philippine Stock Exchange.

SM Land, which holds a 65.18 percent stake in SMDC prior to the tender offer, has raised its stake in the condominium builder to 98.90 percent.

Following the completion of the tender offer on August 2, the public float of SMDC and Highlands Prime fell to 1.1 percent and 0.15 percent, respectively. Both companies have moved to delist from the stock market for failure to comply with the bourse rule of having at least a tenth of their shares in public hands.

SM Prime, SMDC and Highlands Prime are executing a P64-billion block sale transaction today as part of the consolidation of the property-related businesses of Henry Sy and family.

The tender offer is part of a series of transactions amounting to P279 billion designed to consolidate the property companies and assets of the Sy family under one publicly listed entity, SM Prime, thereby creating the country’s biggest real estate firm.

After the offer, SM Land will then merge with SM Prime with the latter as the surviving entity. SM Prime will then acquire specific real estate companies and assets of SM Investment Corp in exchange for new shares in the mall developer.

As part of the reorganization, SM Prime is amending its primary purpose to mixed-use real property development.

SM Prime shareholders approved the consolidation and the doubling of the company’s authorized capital stock from P20 billion to P40 billion for the issuance of new shares.

The consolidated pro-forma net income of the SM property group rose 14 percent to almost P7 billion from P6.14 billion last year.

First-half revenues climbed seven percent to P31 billion this year from P28.9 billion in 2012.