SM Investments Corporation Plans to Increase its Real Estate Assets via a Property-for-Share Swap

​During the regular meeting of the Board of Directors of SM Investments Corporation (SMIC) held on August 7, 2024, the Board approved the property-for-share swap of SMIC with Intercontinental Development Corporation (ICDC), a nearly wholly-owned subsidiary of SMIC, involving conveyance to SMIC by ICDC of its lands in Susana Heights, Muntinlupa City (the Properties) in exchange for new common shares of SMIC (the Transaction).

In accordance with applicable Securities and Exchange Commission (SEC) rules and regulations, the respective Boards of Directors of the SMIC and ICDC deemed it necessary and advisable to enter into the Transaction for optimal utilization and development of the Properties and to align with their respective broader business strategies.

The assets for acquisition comprise approximately one hundred eighty-four (184) hectares of land owned by ICDC in Susana Heights, Muntinlupa City.

The Properties shall be transferred by ICDC to SMIC via a property-for-share swap, subject to regulatory approvals. Upon completion of all closing conditions, the new SMIC shares will be issued to ICDC.

The Transaction is subject to approval and confirmation of valuation by the Securities and Exchange Commission.

SMIC will increase its real estate assets through the acquisition of the Properties and issue new SMIC shares as consideration. There is no material effect on the business, financial condition and operations of SMIC as a result of the acquisition.

ICDC is a subsidiary of SMIC, which owns 96.75% of ICDC; Mr. Franklin C. Gomez and Atty. Arthur A. Sy, who are ICDC directors, are officers of SMIC.