Sy-led SM Investments buys 34% of mall devt owned by Jollibee, Mang Inasal chairmen

(Updated 2:52 p.m.) Sy-led SM Investments Corp. (SMIC) is acquiring 34 percent of a mall development jointly owned by Jollibee Foods Corp. head Tony Tan Caktiong and businessman Edgar Sia II.

 

In a disclosure to the Philippine Stock Exchange, SMIC said it signed Monday an investment and shareholders agreement for the acquisition of CityMall Commercial Center Inc. (CMCCI) shares equivalent to 34 percent of the outstanding capital stock of CMCCI.

 

The remaining 66 percent of the outstanding capital stock is held by DoubleDragon Properties Corp.

 

DoubleDragon Properties Corp. is a 50-50 joint venture company between Injap Investments Inc. headed by chairman Edgar Sia II and Honeystar Holdings Corp. headed by chairman Tony Tan Caktiong.

"The joint venture with Jollibee and Injap Mang Inasal groups in Citimall is intended to put up street malls initially in Visayas and Mindanao with sizes of 5,000 to 10,000 square meters," SMIC CFO Jose Sio told GMA News Online in a text message.

 

Last month, DoubleDragon Properties said it is planning a P1.16-billion initial public offering (IPO) within the year to fund bankroll a planned community mall chain.

 

Some 579.73 million primary offer shares at up to P2 apiece are involved in the transaction, which account for 26 percent of the company's outstanding capital stock.

 

The company has recently completed the acquisition of 12,645 square meters of commercial land on Arnaldo Boulevard in Roxas City. This will be the site of the first CityMall.

 

DoubleDragon aims to roll out a total of 100 CityMall community malls by 2020.

 

In a separate disclosure, SMIC said it will issue up to P15 billion fixed rate bonds. Proceeds will be used for refinancing of maturing loans and funding investment projects, Sio said.

 

The bonds will be offered in one or two tranches with tenors of 7 and/or 10 years.

 

The company appointed BDO Capital and Investment Corp. as issue manager for the offering. —Danessa O. Rivera/KG, GMA News