SEC okays capital hike of SM supermarket arm
The Securities and Exchange Commission (SEC) has approved the increase in capitalization of Supervalue Inc., the corporate vehicle of the SM Group’s supermarkets, from P200 million to P500 million.
The capital hike is intended to fund the construction of new supermarkets and hypermarts.
For this year, the group is planning to add nine supermarkets to its present 29, as well as two hypermarkets to the existing 11.
The total net selling area of the SM Supermarkets and SM Hypermarkets is 162,716 square meters and 122,479 square meters, respectively.
Last year, the group opened two supermarkets – in Bacolod and Taytay as against three in 2006.
On the other hand, the number of hypermarkets opened in 2007 and 2006 were two and four, respectively. These are Muntinlupa and Taytay, and Clark, Mall of Asia, The Block North Edsa and Pasig in 2006.
For this year, the group is also planning to open three new SaveMore outlets as part of efforts to attract more customers to its low-priced products under the Bonus house brand.
The new SaveMore branches will rise in Cebu, Nagtahan, Manila and Tanay, Rizal and will bring the total network to 10 by the end of the year.
SM Supermarket took control of Makro Warehouse Club in 2007 through parent holding firm Rappel Holdings Inc., which is engaged in the business of investing, purchasing, acquiring and owning real or personal property, including shares of stock, bonds and other forms of securities.
Makro, on the other hand, is an unlisted company engaged in buying and selling of food and non-food items to registered customers at wholesale or retail under a warehouse club format. It currently has 15 outlets in key areas in the country.
Makro is originally a partnership between SM Prime Investments of the Sy Group and SHV Holdings N.V. of the Netherlands, a Dutch company involved in trading of food and non-food consumer goods. Makro was established with the Ayala Group in 1996.
In early 2000, Ayala divested its shareholdings in Makro saying it is not among its core competency.
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