Conglomerate SM Investments Corp. of the Sy family said Friday it formed a new investment holding company that will invest in minority stakes in foreign assets.
SM Investments announced in a disclosure to the stock exchange the incorporation of SMIC SG Holdings Pte. Ltd. in Singapore.
“SMIC SG Holdings Pte. Ltd. is a newly-incorporated company, 100-percent owned subsidiary by SMIC. The company was incorporated as an investment holding company for potential minority stakes in foreign companies,” SM Investments said.
It did not provide other details, including the capitalization of SMIC SG.
SM Investments is primarily engaged in banking, real estate, and retail businesses. It has investments in growth sectors and market leaders including logistics, gaming and leisure, food manufacturing, natural resources, dormitories, and office properties.
The conglomerate’s property arm SM Prime Holdings Inc. has investments in China where it operates eight shopping malls. These include SM shopping centers in Xiamen, Jinjiang, Chengdu, Suzhou, Chongqing, Zibo, Tianjin, and Yangzhou.
Regina Capital Development Corp managing director Luis Limlingan said the decision of SM Investments to look for investment opportunities overseas could boost the group’s overall business.
“SM Investments is one of the biggest, if not the biggest conglomerate in the Philippines. To keep on growing at an accelerated pace, it would make sense to seek other opportunities outside the country,” Limlingan said.
Chris Mangun research head of AAA Securities said the SM Group has been planning to enter the Singapore market since 2017.
“This is a good start for its expansion outside the Philippines and China,” Mangun said.
Mangun said while the Philippines would remain the SM Group’s main market, this move is part of the group’s diversification strategy.
“They [SM Investments] will continue to seize and maximize all opportunities locally,” he said.
SM Investments reported a net income of P12 billion in the first quarter, up 27 percent from P9.5 billion in the same period last year.
Consolidated revenues rose 16 percent in the first quarter to P112.1 billion from P96.9 billion in the same period last year.
Other conglomerates with investments overseas are JG Summit Holdings Inc. and Ayala Corp., while local companies with strong international presence include Jollibee Foods Corp., International Container Terminal Services Inc., and Liwayway Holdings Company Limited.
