MANILA, Philippines – SM Investments Corporation, the listed conglomerate of the Philippines' richest man Henry Sy Sr, confirmed that it plans to buy into Goldilocks Bakeshop Incorporated, the largest bakeshop chain in the Philippines.
SM told the Philippine Stock Exchange (PSE) on Tuesday, August 29, that it is in preliminary talks with Goldilocks Bakeshop for "a possible equity investment, joint venture, or other cooperation agreement."
"[T]he said potential investment is pending and subject to regulatory approval by the Philippine Competition Commission (PCC)," SM corporate secretary Elmer Serrano said in the disclosure.
The PCC is the country's antitrust body. It is tasked to review business transactions valued at P1 billion or more. (READ: FAST FACTS: SM Investments Corporation)
Established in 1966, Goldilocks has grown from a small bakery in Makati City to the country's largest bakeshop with over 400 stores here and abroad.
Aside from the Philippines, the bakeshop chain has stores in the United States, Canada, and Thailand, according to its website.
Meanwhile, SM posted a 9% growth in net income to P16.6 billion in the 1st 6 months of 2017, boosted by strong contributions from its core property, banking, and retail businesses.
Over the past few months, the conglomerate has increased its investments in its subsidiaries, with the P60-billion stock rights issue of BDO Unibank Incorporated last January and P15 billion for China Bank last May.