Chilean pension funds (AFPs) have officially announced their candidates for the upcoming board elections at SMU, aiming to expand their influence within the retail group. The move comes ahead of the company's ordinary shareholders' meeting scheduled for April 23.
The funds intend to retain current directors Alejandro Danús and Enrique Gundermann, both of whom represent the Unimarc parent company. Additionally, the AFPs have proposed a third candidate, José Luis Irarrázaval Ovalle, to fill the vacancy.
Irarrázaval, a former Sofofa counselor and industrial engineer, brings extensive corporate experience to the bid. According to SMU’s website, he currently serves as president of Instituto Sanitas S.A. and Compañía Minera San Antonio del Huasco.
Growing stake in retail giant
The push for board seats follows a massive increase in the AFPs' ownership of SMU. While the funds held a 12.08% stake in April 2024, their participation surged to 26.8% by March this year, representing an investment of US$217 million.
This expansion mirrors a broader trend in the Chilean market, where pension funds have also increased their holdings in companies such as Latam Airlines and Parque Arauco. The shift in ownership follows the exit of Southern Cross Group, which sold its 11.25% stake in the company.
The Saieh family remains the controlling shareholder of SMU, holding 39.81% through CorpGroup Holding Inversiones Limitada. According to the company's 2025 annual report, the controlling group operates under a joint action agreement.
The board currently operates with eight members instead of nine. The vacancy arose after Raúl Sotomayaport, a founding partner of Southern Cross, resigned on May 30, 2025, following the firm's divestment from the retailer.
Aside from the two independent directors placed by the AFPs, the remaining board members, including President Pilar Dañobeitía and Vice President Francisca Saieh, were elected by the controlling shareholders.