SM Investments to Transfer Atlas Mining Stake to Dominion by 2027

Portfolio Restructuring

SM Investments Corporation is preparing to relocate its approximately 34% stake in Atlas Mining to Dominion Holdings, a separate listed entity also controlled by the Sy family, with the transaction expected to close in 2027. The move will remove mining operations from the conglomerate's direct portfolio while maintaining family ownership through a different vehicle.

"The intention for SMIC is to completely move out from the mining sector," president and chief executive Frederic DyBuncio said during the company's first-half earnings briefing. The restructuring will shift the shareholding into Dominion Holdings, which will become the primary Sy-linked entity for mining assets.

Atlas Mining operates the Toledo copper mine in Cebu, producing copper concentrate alongside gold and silver byproducts. The company also holds interests in nickel production, mineral exploration, and water resource development.

Strong Contributor to Portfolio Returns

The timing of the exit comes despite Atlas delivering robust performance. Portfolio investments now represent 11% of SMIC's total earnings, up from 7% previously, with Atlas identified as a significant driver of that growth. Executive vice president for finance Franklin Gomez noted that Atlas has "really come back roaring," buoyed by stronger copper and gold prices.

SMIC reported first-half net income of PHP 45.9 billion, an 8% increase year-on-year, while consolidated revenues climbed 6% to PHP 339.2 billion. Banking contributed 47% of group earnings, property accounted for 27%, retail made up 15%, and portfolio investments the remaining 11%.

DyBuncio acknowledged that once the Atlas transfer is completed, the portfolio investments segment will "probably go slightly down" in its contribution to overall earnings.

Filling the Gap

To compensate for the reduced portfolio weight, SMIC is looking to expand its logistics and renewable energy operations. The conglomerate currently operates 2GO, which spans shipping, freight, passenger transport, warehousing, and e-commerce logistics. DyBuncio pointed to 2GO and Atlas as the primary drivers of the portfolio segment today.

On the renewables side, SMIC now holds six concessions it is working to develop. Philippine Geothermal, part of the SMIC portfolio, benefited from elevated energy prices during the first half of the year.

"I think we're really growing our logistics business and the renewable business," DyBuncio said.

The Dominion Connection

The planned transfer will reshape Dominion Holdings from a relatively quiet holding company into a mining investment platform where the interests of the Sy and Consunji families converge. Monte Sur Equity Holdings, linked to the Sys, controls 70% of Dominion, while DFC Holdings, associated with the Consunji group, owns 8.87%.

Isidro Consunji, chairman of DMCI Holdings and Semirara Mining and Power, became Dominion's chairman in March. He also sits on the boards of Atlas Mining and its subsidiary Carmen Copper, positions he has held since 2012. Consunji is listed as beneficially owning approximately 2.70% of Atlas shares directly.

DyBuncio serves as Dominion's president and a director, while Henry Sy Jr. also holds a board seat. This overlapping governance structure suggests the transaction is less an outright exit from mining than a reorganization of where those assets are held within the family's broader portfolio.

Shareholder Structure

SMIC currently holds 33.74% of Atlas Mining. The Ramos family of National Book Store, through Anglo Philippine Holdings and Alakor Corporation, controls another 31.06% combined, representing the other major shareholder bloc.

Details of the transaction structure, valuation, and the precise number of shares to be transferred have not yet been disclosed. Dominion indicated in April that it was considering "various potential and strategic investments" after market reports surfaced about a possible Atlas stake injection, though it noted at the time that no specific investment had been approved by the board.

The transaction is expected to be finalized by 2027, completing SMIC's withdrawal from direct mining exposure while maintaining the Sy family's participation in the sector through a dedicated vehicle.