ISM Communications eyes P655M from stock rights offer

ISM Communications Corp. is targeting to raise P655 million from a proposed stock rights offering to fund new projects in IT-related businesses.

ISM is controlled by the group of former Trade Minister Roberto Ongpin, who owns several other businesses which include Internet-based service provider Philweb Inc. 

In a disclosure to the Philippine Stock Exchange, ISM said its board approved a rights offering to shareholders at a ratio of one share for every five shares held at P0.026 each share.

ISM said the offer price is the median price of the firm’s shares at the PSE for the last 10 trading days.

London-based fund manager Ashmore Investment Management Ltd. and Philweb, which own around 31.2 percent and 17.64 percent, respectively, of ISM, committed to subscribe to their maximum entitlements under the rights offer. 

Philweb has also committed to take up any unsubscribed shares of the rights offer.

A special stockholders’ meeting will be held in August to approve the rights offer.

ISM raised its authorized capital stock to P3 billion from P1.2 billion to facilitate the issuance of shares to Ashmore, one of Europe’s largest dedicated emerging markets funds with $32 billion under management.

Formerly Itogon-Suyoc Mines Inc., ISM earlier acquired an additional 10.2 percent stake in Eastern Telecommunications Philippines Inc. (ETPI) for P104.09 million.  This raised ISM’s total shareholdings in ETPI to 77.7 percent.

ETPI provides fixed-line services such as broadband Internet and data transmission.  Previously controlled by Cable & Wireless Plc., ETPI is one of the oldest telecommunications companies in the Philippines.

ISM views ETPI as key to its long-term plan, started in 2002, to shift its business focus to operations such as pay-television, multimedia and information technology from mining.