SM mulls over how to go into e-commerce business

Sy-led SM Investments Corp. (SMIC) revealed on Wednesday the plan to expand its logistics and property businesses and diversify its portfolio to include e-commerce.

“In addition to our three core businesses, as the parent holding company, SM Investments also has the opportunity to build its portfolio of investments in complementary businesses,” SMIC president and CEO Frederic DyBuncio said during the company’s annual stockholders’ meeting.

Its core businesses are retail trade, banking, and property development.

“We look to invest in partners in leading positions, strong management, and the potential for high growth and attractive yields,” DyBuncio said in a press conference on the sidelines of the stockholders’ gathering.

The company plans to expand its logistics and property businesses under the brands 2Go and MyTown dormitories.

“More or less it’s in those areas we’re trying to focus on and see synergies for the group,” DyBuncio said.

SM bought a significant stake in 2GO Group via a 34.5 percent stake in the logistics firm’s parent company, Negros Navigation Co. Inc., in March 2017.

In another transaction last year, it completed the acquisition of a 61.2 percent stake in MyTown operator Philippines Urban Living Solutions Inc.

"I think we're sort of following also the direction of the government in terms of the priority projects," DyBuncio noted.

“The plan is to really increase the growth of the economy nationwide in the Visayas and Mindanao area. That’s one reason why we got into, let’s say, the logistics space,” he said.

SM Investments is now studying how to go into the e-commerce industry.

“We continue to explore which and how we can actually get involved in the e-commerce space ... That’s one space we’re trying to learn more of,” DyBuncio said. —VDS, GMA News