ISM Communications, Inc. is selling around 30% of its shares to a Singapore-based fund management firm for P1.22 billion, a few weeks after it sold a controlling stake in the company to businessman Dennis A. Uy.
In a disclosure to the stock exchange on Tuesday, ISM said its executive committee has approved Accion Common Development Fund SPC’s purchase of 841.95 million treasury shares in the company at P1.45 apiece. This represents 30.07% of the company’s resulting outstanding capital.
The company said a fourth of the acquisition price will be paid upon purchase. ISM’s executive committee mandated that the sale and purchase documents be executed no later than the end of September. The remaining 75% will be paid by the end of the year.
ISM described Accion as a special purpose company owned, controlled, and managed by Accion Management Pte. Ltd. The Accion group invests mostly in growth, mature, or near mature companies in several industries such as technology, health care, natural resources-related services, infrastructure, education, logistics, hospitality and lifestyle, and consumer-related.
The group’s portfolio includes companies based in Indonesia, China, Australia, Malaysia, and Singapore.
Earlier this month, Mr. Uy also acquired 883.73 million unissued common shares of ISM at P1.45 each, equivalent to 45.13% of the company’s outstanding total stock. The acquisition was valued at P1.28 billion.
In an earlier disclosure, ISM said the proceeds of the share issuances will be used to finance investment opportunities currently being pursued by the company.
Incorporated in 1925 as a mining company under the name Itogon-Suyoc Mines, Inc., ISM transformed itself into a company engaged in information technology, multimedia communications, and other similar industries in the early 2000s.
The Securities and Exchange Commission then granted the company’s application to change its primary purpose to that of a holding firm back in 2016.
ISM has a 32% stake in German firm Acentic GmbH, which provides internet connectivity and inter-room entertainment solutions for the hospitality industry. It also owns 37.1% of the Philippine Bank of Communications.
The company widened its net loss attributable to the parent to P17.2 million in the second quarter of 2018, after posting no attributable profit in the same period a year ago. Gross revenues reached P60,000 in the same quarter.
Year-to-date, ISM’s net loss attributable to the parent stood at P12.2 million, on the back of P120,000 in revenues.
ISM’s market capitalization stood at P3.26 billion at the end of trading on Tuesday. Shares in the company gained 14 centavos or 4.62% to close at P3.17 each at the stock exchange. — Arra B. Francia
