Saturday, March 16, 2013

my stok picks for the coming weeks: on the rumoured smdc-smph merger (16 mar 2013)

in the news ...
SM Group sees merger of mall, property units this year
by Kathleen A. Martin,
Posted at 03/15/2013 6:21 PM | Updated as of 03/15/2013 6:21 PM
MANILA, Philippines -- SM Group's planned merger of its mall and property units is expected to be completed this year, a senior executive of SM Investments Corp. said Friday.
"[It will happen] this year, before the end of this year," SMIC Chief Financial Officer Jose Sio told reporters.
SM Group in February confirmed the possible merger of SM Prime Holdings Inc., SM Development Corp. and SM Land Commercial Properties Group.
But Sio said it is too early to say which will be the surviving entity among the three.
"It's a complicated thing that we have to study the most efficient way [of consolidating the units]," Sio said.
SM Prime Holdings develops and manages the group's shopping centers, while SMDC is involved in residential property development. SM Land, meanwhile, manages commercial and leisure properties.

so .. which will be the surviving entity?

im betting of course that it would be a listed company .. so its either smdc or smph ... and since sm land owns majority of smdc .. im betting that smph will buy sm land by issuing smph shares to smic (since smic owns majority of sm land) .. in the process .. smph takes over sm land and smdc's assets in one go ... leaving smdc a shell company ..  smph will then possibly sell the shell company to belle so that it can use the smdc shell to bakdoor list the belle casino ...

which to buy then? smdc or smph? my bet .. buy sm ;)

p.d. i sold already my smdc and sm recently (will buy bak sm later .. just needed the cash to buy some other stok .. and besides .. pumanget chart ni sm lately) .. but i still have some smph  8)

p.s. op kors .. as can be read above ... these are MY trading notes for MY reference only ... by no means are these to be taken by the reader as recommendations to buy or sell; blog contents are valid only up to the date of publication; views are subject to change without prior notice

related posts:

question and answer: What's your insight on smdc?  (21 feb 2013)
The Ninja Stock Monitor: SMPH (15 mar 2013)