The Sy family is preparing to consolidate its controlling stake in Atlas Consolidated Mining and Development Corporation by next year through a strategic shift involving its listed entities, moving SM Investments Corporation’s (SMIC) mining assets into Dominion Holdings Inc. (DHI).
The planned divestment allows SMIC to fully withdraw from the mining industry and redirect its capital toward expanding its portfolio in renewable energy and logistics.
Despite Atlas Mining reporting stronger first-half earnings driven by elevated global copper and gold prices, SMIC confirmed its exit plan remains firm.
At a media briefing on Wednesday, August 12, SMIC President and Chief Executive Officer Frederic DyBuncio detailed the planned transition:
“The intention for SMIC is to completely move out from the mining sector. And we want to move the shareholding we have in Atlas into one of our other listed entities [which is still owned by the Sy family] that will bring it into Dominion Holdings. Our plan is to do that sometime next year,” he explained.
This development follows Dominion Holdings’ acquisition of a 20.43 percent stake in Atlas from Anglo Philippine Holdings Corporation, an entity owned by the Ramos family.
Under a signed deed of assignment, DHI acquired subscription rights to 727.2 million Atlas shares for P857 million in cash.
Anglo previously paid a 25 percent initial subscription price of P797.05 million in 2017. DHI will now assume the remaining 75 percent balance of P2.39 billion, which will be payable upon a call by the Atlas board of directors.
Prior to this sale, the Ramos family was the largest shareholder in Atlas, maintaining a combined 42.14 percent stake through Alakor Corporation, Anglo Philippine Holdings, National Bookstore, and individual family directors, with Anglo directly holding approximately 27.14 percent.
The transaction represents DHI’s entry into the mining industry following its acquisition by Monte Sur Equity Holdings Inc., another Sy family vehicle. DHI indicated that building a presence in Atlas aligns with its strategy to establish a broader asset portfolio focused primarily on mining investments for long-term growth.
With SMIC set to forego earnings contributions from Atlas following next year’s transfer, the conglomerate plans to rely on its expanding non-mining investments to drive growth.
“We’re really growing our logistics business and the renewable business. For the renewable business, we actually have now six concessions which we’re trying to develop. And renewables is something that we’re very, very focused on,” he noted.
DyBuncio added, “Logistics is something also that we’re trying to build and actually grow,” noting that 2GO Group Inc. is seeing strong growth in its cargo forwarding and e-commerce delivery businesses for online retailers.
SMIC’s logistics arm, 2GO Group Inc., is currently scaling its warehousing, cross-docking, and project logistics operations to handle heavy equipment and large-scale cargo transport across the country.