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Depositary Receipts – Frequently Asked Questions

1. What is an American Depositary Receipt (commonly known as ADRs or DRs)?
2. What is a DR ratio?
3. What are the benefits of DRs to U.S. investors?
4. Where are SM Investments’ DRs traded?
5. How do I obtain trading information and historic prices of SM Investments’ DRs?
6. How do I convert SM Investments’ shares into DRs?
7. Where do I find information on dividend payments of SM Investments?
8. How are DR dividends paid and taxed?
9. Can I have my dividends paid directly into my bank account?

1. What is an American Depositary Receipt (commonly known as ADRs or DRs)?

American Depositary Receipts (commonly known as ADRs or DRs) are negotiable securities issued by a U.S. depositary bank to domestic buyers as a substitute for direct ownership of publicly traded stocks of a foreign company. DRs can be traded on U.S. trading venues such as New York Stock Exchange, NASDAQ and over-the-counter on OTC Markets.

2. What is a DR ratio?

The number of underlying shares (whether multiple or fractional) represented by a single DR. SM Investments Corporation’s (SMIC) DR to ordinary share ratio is 2:1, that is, two DRs will be represented by one SMIC ordinary (local) share.

3. What are the benefits of DRs to U.S. investors?

U.S. investors may prefer to purchase DRs rather than shares in the issuer’s home market because DRs trade, clear and settle according to U.S. market conventions. DR price and dividends paid to DR holders are denominated in U.S. dollars. Additionally, there may be a cost benefit to holdings DRs versus holding foreign shares in the U.S. 

4. Where are SM Investments Corporation (SMIC) DRs traded?

SMIC’s DRs are traded on the OTC (over -the-counter) market in the US under the ticker symbol SMIVY and CUSIP #78455R205

5. How do I obtain trading information and historic prices of SMIC ADRs?

Trading information and historic prices for SMIC’s ADRs can be found on the BNY Mellon website: www.adrbnymellon.com .

6. How do I convert SMIC’s shares into ADRs?

Converting shares into DRs must be done through a broker or investment advisor.

7. Where do I find information on dividend payments for SMIC?

For SMIC’s dividend information, please visit the following websites: SMIC – Investor Relations (http://sminvestments.com ), OTC Markets Inc. (http://www.otcmarkets.com/home), The Philippine Stock Exchange (http://www.pse.com.ph/stockMarket/home.html)

8. How are DR dividends paid and taxed?

Dividends are paid in U.S. dollars and are generally taxable, just like dividends on
U.S. shares.

9. Can I have my dividends paid directly into my bank account?

Dividends for beneficial holders (those who keep their holdings in a broker’s account) will be paid to the DR shareholders‘ brokers through Depositary Trust Company (DTC), the security clearing and settlement system in the U.S. Registered holders (those who holds their holdings in physical or book form in the depositary’s share registry for SMIC, will be paid directly through BNY Mellon‘s Transfer Agent. 

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. 857-0117

 
 
 
Date: 
Monday, July 29, 2013