MANILA, Philippines - The Ortigas family foiled the SM Group's attempt to buy a 34% stake in its property firm, BusinessWorld reported on Friday.
BusinessWorld quoted company director Jaime M. Ortigas as saying the Ortigas group matched SM Group's offer to buy Hong Kong Shanghai Banking Corp.'s (HSBC) 34% stake in the property firm for P11 billion.
"The Ortigas Group exercised its right of first refusal as it bid for the shares held by HSBC….OCLP Holdings (Ortigas & Co. Limited Partnership Holdings, Inc.) was able to match the earlier offer of the SM Group," Ortigas said.
"HSBC was selling something worth like P11 billion for the entire 34% stake and the deal pushed through. Today (Thursday) was the deadline for the purchase payments," he said.
On Friday morning, the Sy-led SM Investments confirmed the news report.
"We were informed that the existing stockholders of Ortigas Holdings, Inc. (OHI), which consist mainly of the Ortigas Family, exercised their right of first refusal on OHI shares owned by Hongkong and Shanghai Banking Corporation," SM Investments said, in a disclosure to the stock exchange.
The Ortigas group has vast properties in Mandaluyong, San Juan and Quezon City. It owns the 16-hectare Greenhills shopping center, where V-Mall houses 5 SM franchises namely Toy Kingdom chain, SM Appliance Center, Our Home, Watsons, and Ace Hardware.