Dormant IT firm Island Information and Technology Inc. is expected to choose its financial adviser this week for a planned merger with mining firm JDVC Resources Corp. in connection with JDVC’s backdoor listing plans on the Philippine Stock Exchange (PSE) .
In a statement, Island Information said its board of directors is set to meet this week to decide on a financial adviser from among several investment firms that have expressed interest.
The company’s due diligence review on JDVC is ongoing to assess the feasibility “of entering into a merger, consolidation, a mutual purchase or exchange of shares, or any other form of business combination the companies might deem proper.” The review is expected to take 45 to 60 days.
JDVC is a mining firm with a mineral production sharing agreement (MPSA) with the government involving a contract area of 14,240 hectares in Cagayan. The company is 40 percent owned by South Korea Hyung Rae Doo while the remaining stake is held by six Filipino shareholders.
The MPSA gives JDVC the exclusive right to explore, develop, and utilize magnetite mines in the offshore areas of Sanchez Mira, Pamplona, Abulug, Ballesteros, Aparri, Buguey and Gonzaga—all in Cagayan.
Incorporated in 1959, Island Information was originally Island Oil Co. engaged primarily in oil and mineral exploration. Due to losses incurred, the company shifted its purpose to metal mining in Isabela, prompting a name change to Island Mining & Industrial Corp. in 1965.
However, it suspended its operations in 1981 due to rising costs and fluctuating metal prices. In 2000 it again changed its purpose, this time to information technology, and amended its corporate name to its present one.