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ISM Communications Corp. said on Wednesday that its
board approved the private placement of a United Kingdom-based fund
manager in the company as proceeds will be used to fund investments
in a subsidiary.
In a disclosure to the Philippine
Stock Exchange, Rodolfo Ma. A. Ponferrada, ISM corporate information
officer, said its board approved a $10-million private placement by
Ashmore Investment Management Ltd. in the company. ISM agreed to
have the shares issued at a 10 percent discount to the 20-day
trailing average price of its shares.
As of Tuesday, the 20-day
trailing average price of ISM stood at P0.0304. “Therefore, the
issue price for the shares of the corporation will be issued in
favor of Ashmore which is equivalent to the peso value of the
$10-million private placement,” Ponferrada said.
Ashmore is major investment fund
based in the United Kingdom with funds under management of about $32
billion. Ashmore is a principal shareholder in ISM, with a total
stake of 31.3 percent.
“To accommodate the private
placement of Ashmore as well as to provide the corporation with
added flexibility for future capital expansion, the board likewise
approved the increase in ISM’s capitalization from P1.2 billion to
P3 billion,” Ponferrada said.
He added that the proceeds from
the private placement would be earmarked for further investments in
Eastern Telecommunications Philippines Inc. (ETPI) and related
acquisitions in the information and communication industries.
ISM, which provides fixed line
services such as broadband Internet and data services, has a
controlling stake of 57.7 percent in ETPI.
Last July, ISM purchased 17.7
percent of ETPI through a share swap agreement with one of the
latter’s shareholders, Aerocom Investors and Managers Inc.
ISM used to be called
Itogon-Suyoc Mines Inc., before a restructuring in 2002 that shifted
the company’s focus to information technology, telecommunications,
multimedia and other related business lines.
--Darwin G. Amojelar
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