SM Investments jacks up stake in Atlas to 28.4%

SM Investments Corp. (SMIC) is set to raise its interest in Atlas Consolidated Mining and Development Corp. to 28.43 percent after buying P5.34 billion worth of convertible loans held by its banking unit Banco de Oro Unibank.

In a statement issued Monday, Atlas said SMIC had purchased the debt paper from BDO and given notice of its intention to fully exercise the conversion option, which will involve the issuance of about 273.098 million shares in the mining firm.

The flagship holding firm of tycoon Henry Sy started diversifying into mining in July last year, by buying a 17.9-percent interest in Atlas.

“SMIC’s decision to increase its equity investment in Atlas affirms its optimism in Atlas’ potential for growth as a key player in the mining industry,” Atlas said.

Just last month, Atlas announced that its wholly owned subsidiary Carmen Copper Corp.—operator of the Toledo copper mine in Cebu—had produced a record 7.35 million pounds of payable copper in March and had increased its production rate during the first quarter by 21 percent year on year.

Following a $300-million offshore bond offering, the first for a Philippine mining issuer, CCC announced plans to expand its operations by enhancing production efficiency and developing the commercial value of its copper processing by-products.

It is projecting to sell this year a total of 80 million pounds of copper metal, which is 12 million pounds more than what was sold in 2011.

The mining firm, which is led by businessman Alfredo Ramos, is also actively pursuing exploration projects and is looking into acquisition opportunities.

The Consunji family also recently acquired a 5-percent stake in Atlas, which has a P32.7 billion market capitalization as of Monday’s close.—Doris C. Dumlao