Institutional investor plans to sell SMIC, SMPH shares--Bloomberg

An institutional investor is planning to sell shares in SM Investments Corp. (SMIC) and SM Prime Holdings Inc. (SMPH), according to a report by Bloomberg.

Bloomberg reported an undisclosed institutional investor in SMIC plans to sell 9.6 million shares in the company at P830 to P840 per share.

The offer price represents a discount of about 3.9 percent to 5 percent based on SMIC’s closing price of P874 on Tuesday. The transaction could raise P8.06 billion.

In a separate deal, Bloomberg also reported an undisclosed institutional investor in SMPH is looking to sell 189.2 million shares at P23.18 to P23.42 apiece via a special block sale.

The offer price reflects a discount of 4 percent to 5 percent to SMPH’s closing price of P24.40 on Tuesday. The deal could generate up to P4.4 billion in proceeds.

UBS is the sole book runner for both transactions.

Block trades are typically used by large shareholders to offload sizable positions quickly, often at a discount to the market price to attract investors.

As of press time, neither SMIC nor SMPH had issued a statement when sought for comment.