For shareholders of SMC2J and SMC2K a tender offer will happen but instead of getting cash proceeds, SMC is offering a share swap for the shares.
A share swap is when a company exchanges one share for another. In this case, 10 shares of SMC2J or SMC2K can be swapped for 10 shares of either SMC2P, SMC2Q or SMC2R.
Below are the details for your reference:
| Shares for Tender Offer | SMC2J and SMC2K |
| Shares for Swap | SMC2P , SMC2Q , SMC2R |
| Exchange Ratio | 1 Tender Offer Share : 1 Swap Share Example: 30 shares of SMC2J can be swap for 10 shares of SMC2P, 10 shares of SMC2Q and 10 shares of SMC2R |
| Minimum shares for tender | 10 shares, with multiple of 10 shares thereafter |
| COL Offer Period | September 10 - October 7, 2025 (12nn) |
| Target Cross Date & Settlement Date | October 24, 2025 |
Below are the details of the Preferred Shares to help you make your investment decision:
SMC2J | SMC2K | SMC2P | SMC2Q | SMC2R | |
| Issue Price | PHP 75.00 per share | ||||
| Dividend Rate | 4.75% | 4.5% | 6.7% | 7.00% | 7.25% |
| This is the minimum initial dividend rate. The final rate will be determined after October 10, 2025 | |||||
| Optional Redemption Date | October 2023 onwards | December 2023 onwards | 3 years from exchange date (October 2028) | 5 years from exchange date (October 2030) | 7 years from exchange date (October 2032) |
| Step Up Dividend Rate Adjustment | October 2025 | December 2025 | 5 years from exchange date (October 2030) | 7 years from exchange date (October 2032) | 10 years from exchange date (October 2035) |
If you choose NOT to participate in this Tender Offer then SMC will redeem the SMC2J and SMC2K on the following dates and you will receive your cash proceeds on the Target Payment Date and/or once COL has received the funds:
| SMC2J | SMC2K | |
| Record Date | October 19, 2025 | November 20, 2025 |
| Target Payment Date | October 29, 2025 | December 10, 2025 |
If you choose YES to participate in this Tender Offer then these are the benefits that it can give:
- Re-investment risk will be eliminated as you will continue to stay invested in SMC preferred shares
- No need to pay for any charges or fees for the re-investment
- You are able to continue your investment with a higher dividend rate
Here is a video should you need more clarification about this offer: