SM Investments Corp. (SMIC), the listed holding firm of retail king Henry Sy Sr., is moving to simplify its corporate structure by putting subsidiaries, affiliates and other assets together in their respective lines of business or interest.

The restructuring, already approved by SMIC’s board, aims to realign the ownership of shares and properties within the corporation to follow major business lines, namely retail merchandising, mall operations, the banking and financial services, real estate and private investments.

Once completed, the holding firm would be able to unlock its corporate value and become even more transparent to the investing public, the company said.

“It would … help investment analysts forecast the company’s future earnings and place a realistic value on its assets,SMIC president Harley Sy said in a statement Wednesday.

“Funding options for future projects would likewise broaden as the specific lines of business can then tap specialized investment funds that match their specific areas of interest.

He said the group wants to accomplish the plan by end-2006. Part of the plan is the creation of two new companies, which would fall under SMIC.

The group’s retail operations would be under a company called SM Retail Inc. It would have under its wing the companies operating the SM Department Stores, SM Supermarkets, and the SM Hypermarkets. At present, this sector generates over 70 percent of the group’s total revenues.

On the other hand, SM Land Inc. would be formed to handle the group’s various real-estate developments.

SM Prime Holdings would continue to be the sole mall operator of SMIC. However, SM Prime also has huge inventory of raw land and land where its malls are currently situated. Being in prime locations all over the country, these lots provide high-rise development opportunities as well in the future for SM Prime, making it a vital partner in either the high-rise residential or commercial projects of SMIC’s property group.

Banking units Banco De Oro and China Banking Corp. would continue to operate independently given their solid performance and strong profitability.

SMIC shares last traded on Tuesday at P219.