SM INVESTMENTS Corp. (SMIC) said it is in the final stages of acquiring a 34% stake in Goldilocks Bakeshop, Inc., months after the deal to fully purchase the business fell through.
In a disclosure to the stock exchange on Monday, the holding firm of country’s richest man Henry Sy, Sr. confirmed reports of the acquisition. This will give the SM Group a significant minority interest in the company which currently operates more than 600 stores nationwide.
To recall, the listed conglomerate’s unit, SM Retail, Inc., backed out of the deal to acquire 100% of Goldilocks’ shareholdings back in February, citing changes in the general business environment.
The Philippine Competition Commission (PCC) had already approved the P2-billion transaction at the time. Alongside the approval were some conditions to ensure that the deal will not hinder competition inside SM malls, which include giving Goldilocks’ competitors a “fair chance” to their positions in SM malls at all times.
The SM Group also pledged that it will not give Goldilocks access to competitors’ information, such as sales data captured by the point-of-sales system of mall tenants.
With the revised acquisition plan, SMIC will no longer need PCC approval as it will fall below the P2-billion mandatory notification threshold of the commission.
Shares in SMIC lost 2.41% or P23 to close at P933 each at the stock exchange on Monday. — Arra B. Francia
