The Sy family is set to consolidate its controlling stake in Atlas Consolidated Mining and Development Corp. by next year after SM Investments Corp. (SMIC) transfers its mining interest to Dominion Holdings Inc.

SMIC is set to divest from Atlas Mining next year so it can focus more on growing the renewable energy (RE) and logistics units under its portfolio investments.

In a media briefing on Wednesday, Aug. 12, SMIC President and Chief Executive Officer (CEO) Frederic C. DyBuncio said that despite the spike in earnings of Atlas in the first half of the year due to higher copper and gold prices, the conglomerate’s plan to leave the mining business has not changed.

“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.

Just last Monday, Dominion Holdings acquired a 20.43-percent interest in Atlas from Anglo Philippine Holdings Corp. (APO) of the Ramos family.

Dominion Holdings said it has signed a deed of assignment for the acquisition of subscription rights to 727.2 million Atlas shares from APO for ₱857 million in cash.

In 2017, Anglo paid 25 percent of the subscription price for these, amounting to ₱797.05 million. DHI will now assume payment of the 75-percent balance amounting to ₱2.39 billion to Atlas upon the call of Atlas’ board of directors.

Prior to the acquisition, the Ramos family was the biggest shareholder of Atlas at 42.14 percent, held through Alakor Corp., APO, National Bookstore, and family directors. APO directly owned about 27.14 percent.

The acquisition marks the first investment of DHI in the mining industry after it was acquired by the Sy family’s Monte Sur Equity Holdings Inc. DHI intends to hold a broader portfolio of assets by primarily investing in mining corporations.

DHI, with the objective of achieving long-term growth and returns, has determined that investing in Atlas will bolster the company’s portfolio.

With the loss of its earnings from Atlas after the divestment next year, DyBuncio said SM’s portfolio investments will look to its other businesses for 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 (deliveries for online retailers) businesses.

2GO is also trying to expand its project logistics business, which is engaged in moving heavy equipment and other large cargo, as well as its warehouse and cross-stop businesses.