SMIC consolidates property interests under Shoemart Inc.

SM Investments Corp., the holding firm of the Sy family, has decided to consolidate its property interests under its unit Shoemart Inc., the company said Thursday. In a statement to the Philippine Stock Exchange, the SM Investments said it has received board approval for the swap of some 1.5 billion shares of SM Development Corp. to Shoemart in exchange for 385,000 Shoemart shares. SM Development is currently the property developer of the SM Group. The share swap will pave the way for Shoemart to become the real property holding company for the SM Group. Shoemart was the former flagship company of Sy-led group. "SMIC decided to consolidate its property sector by designating Shoemart Inc., which is 65-percent owned by the company as the corporate vehicle for the purpose," SM Investments said. Shoemart will also be filing an application before the Securities and Exchange Commission to increase its authorized capital stock from P500 million to P1 billion. For the increase of P500 million, SM Investments will subscribe to 25 percent and the SMDC shares will be used as a paid-up capital for 385,000 Shoemart shares. SM Development shares, affected by concerns on the mortgage problems in the United States, on Thursday fell by 5.88 percent to P4.80. - Cheryl Arcibal, GMANews.TV