Sy-led holding company SM Investments Corp. will embark on a no-deal road show starting next month to drumbeat investors’ interest and update them about the listed firm, Vice-President for investor relations Corazon P. Guidote told BusinessWorld.

In an interview, Ms. Guidote said the first leg would start in Hong Kong and Singapore on the third week of August, and the last leg will be in New York and London on the second week of September.

‘It is a handholding exercise. We are maintaining our relationship with the investors by providing additional information, updates and talk about future plans as well. If we are able to handhold well, we will win their loyalty and earn new investors,’ she added.

For one, SM Investment will explain to investors its acquisition of the Supervalue, Inc. (SM Supermarkets), and Super Shopping Markets, Inc. (SM Hypermarkets).

‘I am sure there will be a lot of questions about the valuation, earning prospects of these two companies. They are a huge bulk of retail business [as this means] at least 60% of additional revenues,’ she added.

Aside from retail merchandising, SM Investments also has interests in shopping malls, banking and financial services, real estate development and tourism. Last month, it finalized the acquisition of the supermarket and hypermarket operations of its affiliate firms through a share-swap deal with majority shareholders.

Executive Vice-President Jose T. Sio said this would mean more funds, leverage and resources.

‘When you talk about [the] retail group of SM Investments, it encompasses not only the department store but also the supermarket and hypermarket which are a big chunk of retail group of the SM,’ he added.

SM hypermarkets are retail outlets of around 10,000 square meters in floor size that combine a wet market, supermarket and discount store. SM Supermarkets are smaller outlets with an average floor space of 8,000 square meters. The SM group currently operates 25 supermarkets and five hypermarkets.

Mr. Sio said the supermarkets and hypermarkets churned in P34 billion in sales last year which will likely grow by 15% more this year. At least four hypermarkets will be opened this year in Molino Bacoor, Cavite; Valenzuela; Makati; and Frontera Verde, Pasig. In 2005, department store sales hit P40 billion.

‘They [hypermarkets and supermarkets] will be increasing as we [expand] the malls. As a group, we will continue to have the department store, hypermarket and supermarket. There may be more hypermarkets in the province or smaller type of malls where the hypermarket will fit in,’ he added.

Ms. Guidote said folding in the supermarket and the hypermarkets under the flagship company would mean more cash flows for SM Investments.

SM Investments will issue new shares equivalent to 9.6% of the expanded capital to acquire the supermarket and hypermarket operations. This was expected to take place by third week of July but SM Investments has yet to secure the nod of the Securities and Exchange Commission.

As consumer spending remains tight amid escalating oil prices and higher tax sales, SM Investments remains bullish on the retail sector amid proliferation of flea markets and the 168 shopping mall in Divisoria, Manila which is a haven for shoppers looking for bargain.

‘[Mall] 168 has its own market. To us, it will not stay long. It is not good for [the] Philippine economy although I think it is phenomenal. It has a customer it serves,’ said Mr. Sio.

‘If you look at the history of Philippine retail, it continues to grow despite the negative economic growth rate during the [1987] Ninoy Aquino assassination, [1970s] oil crisis, and [1997] Asian [financial] crisis,’ he said.