Trading of SMDC, Highlands Prime shares suspended

MANILA, Philippines – Trading of shares of Henry Sy‘s property units Highlands Prime Inc. and
SM Development Corp. (SMDC) will be suspended starting Tuesday, August 13 after their public floats fell below the minimum required by the Philippine Stock Exchange (PSE).

The public floats of Highland Prime and SMDC fell to less than 10% after their respective shareholders participated in a tender offer conducted by SM Land Inc., the PSE said in memoranda posted on its site.

SM Land conducted the tender offer in line with the planned merger of the SM group’s property units by the end of this year.

SM Land will be folded into SM Prime Holdings Inc., which will now become a full-range real estate company.

The merger, which aims to dislodge Ayala Land Inc. as the country’s largest property company, will help reflect the true value of the Sy family’s property businesses.

Tender offer

SM Land acquired 3.13 million shares equivalent to 33.73% stake held by the public in SMDC.
Prior to the transaction, SM Land owned 6.04 million shares or 65.18% of SMDC.

SM Land also bought 2.24 million shares or 99.85% of Highlands Prime.

Following the transactions, SMDC’s public float fell to 1.1% and SM Prime, to 0.15%. – Rappler.com