ISMI corporate information officer M.C. Gilladoga Jr. told the Philippine Stock Exchange that the company’s board of directors approved last Monday the business model presented by Philweb to "transform the business activities of the company from mining to a provider of pay-television (including cable and satellite), multimedia and information technology."
Philweb itself was once an oil exploration firm called South Seas Natural Resources, a listed company. It was bought by the new owners in early 2000 to lead a wave of IT and Internet-related businesses coming in through the backdoor – or buying into listed but dormant stocks as a more convenient and cheaper way of tapping the equities market.
Since then, a number of listed issues have joined the bandwagon: Ajo.net, iPeople Inc., Island Information and Technologies Inc., iVintage Corp., Multitech Investments Corp., among others.
Gilladoga said along with the transformation, ISM will amend its Articles of Incorporation to reflect its new primary purpose and change of corporate name.
ISMI has been a gold-producing company with mines in the municipalities of Itogon and Suyoc in Benguet province. The Itogon Mines, located 23 kilometers southeast of Baguio City, operates a 400-metric ton per day capacity gold mill on straight cyanidation circuit while the Suyoc Mines, situated 96 kilometers north of Baguio City, is currently being rechecked for potentials in the hope of resuming operations stalled in 1977.
In February 1993, Rafael Ortigas Jr. and his business associates gained control of ISMI from Benguet Corp. but the company has since suffered from losses due to low production and the slump in metal prices.
By mid-2001, the group of former Trade and Industry Minister Roberto Ongpin, who also controls Philweb, bought and gained controlling interest in ISMI, which will then complement the operations of Philweb.
Gilladoga said aside from adopting its business model, Philweb will proceed with the negotiations with strategic investors who will become key partners in the business transformation of ISMI.