BIZ BUZZ: SM takes ‘interest’ in RCBC
Hardly making any splash but not exactly being coy about it, the SM Group is now among the top 10 stockholders of Yuchengco-led Rizal Commercial Banking Corp. (RCBC).
Looking at the published roster of top 100 stockholders as of end-June, several holding firms of the Sy family have accumulated around 5.24 percent of RCBC common shares—and these even exclude those picked up by individual Sy family members.
Market sources said the SM Group has been buying shares of RCBC from the open market “for years” alongside individual Sy family members. As such, SM Investments Corp. now holds 53.86 million shares or 2.22 percent while privately held holding firm Sybase Equity Investment Corp. has around 2.9 percent. Also, Sysmart Corp. has 3 million shares or 0.12 percent.
READ: Rate cuts to boost RCBC earnings
Based on RCBC’s current market capitalization of P53.5 billion, their combined stake is valued at around P2.8 billion.
Asked about this matter, a source from the SM Group told Biz Buzz that this buying of RCBC shares is not to launch any hostile takeover. “It’s really an investment opportunity because the shares are undervalued,” the source noted. “In fact, it’s not only RCBC, but also PNB (Philippine National Bank). We’ve been buying shares of undervalued banks for years.”
Article continues after this advertisementIn the case of PNB, however, any shares bought aren’t lodged under any known SM affiliate.
Article continues after this advertisementOf course, SM’s investment is but a small fraction of the sum that Japanese banking giant Sumitomo Mitsui Banking Corp. has invested in RCBC. The foreign bank first bought 4.99 percent of RCBC in 2021 and gobbled up an additional 15 percent for P27.13 billion just last year.
Meanwhile, the Ayala and Yuchengco groups are already partners in the education business, having merged their interests thereof into iPeople. While there’s no similar partnership (that we know of) in the works for the banking businesses, by taking a passive—but not negligible—interest in RCBC, it’s a signal that the Sys want to be in the loop, and subtly say, “We’re here, too!” — Doris Dumlao-Abadilla
Alfamart 2K
Wondering why you see Alfamart almost everywhere?
Well, it’s probably because the SM Group has so far opened 2,000 branches of the “super mini-mart” across the country.
A residential village in Sta. Rosa, Laguna province had the privilege of opening the doors of the 2,000th store.
“Alfamart sees immense value in serving underserved communities,” Alfamart chief operating officer Harvey Ong said.
“Our 2,000th store marks a pivotal milestone, and the warm reception in Balibago underscores the impact our presence can have,” Ong added.
Another fun fact: The newest store is also the 18th Alfamart branch in this area within Sta. Rosa. This gives a lot of choices for travelers, especially those friend groups and families heading to Enchanted Kingdom.
Pretty soon, we might just see Alfamarts sprouting within walking distance from each other.
Let’s see how many more are in the works this year! —Meg J. Adonis
