SMIC to merge specialty stores into SM Retail

SM Investments Corp. (SMIC) has secured the go-ahead of the Securities and Exchange Commission to merge more than a thousand Sy-owned specialty stores into SM Retail Inc.

The publicly listed holding company will merge some 1,300 retail outlets — including Ace Hardware, Watsons, Toy Kingdom, SM Appliances, Our Home, Baby Company, Kultura, Sports Central, and Pet Express— into SM Retail in exchange for shares of stock.

"The merger is seen to be both value and earnings accretive given the stores' competitive position, synergies with SM Supermalls and strong growth potential," SMIC said in a statement on Tuesday.

The company has appointed Macquarie Capital as advisor for the transaction.

The Sy-led company saw its consolidated net income grew by 3.6 percent to P7 billion in the first quarter, driven by "vibrant" consumer spending. — Jon Viktor Cabuenas/VDS, GMA News