ISM directors Roberto Ongpin, Gregorio Araneta, Craig Ehrlich, Scott Sproule and Eric Recto, represent the investors in the three companies.
Also approved by the board and stockholders was ISM’s acquisition of Aerocom Investors & Managers Inc.’s 17.7-percent stake in Eastern Telecommunications Philippines Inc. (ETPI), a local telecommunications service provider.
The deal will be done through a swap of 6.82 billion ISM shares valued at a total of P68.2 million.
ISM, formerly Itogon-Suyoc Mines Inc., was restructured in 2002 by former Trade Minister Roberto Ongpin’s business group to focus on pay-television, multimedia and information technology.
As it eyes control of ETPI, ISM is also negotiating to buy the Australian Gigahertz Network International Pty. Ltd.’s 40 percent interest in the telecommunications group and the 10.percent held by the government. ISM believes that ETPI will play a major role in it’s long-term strategy.
ISM president Eric Recto said he is optimistic that ISM can turn around ETPI, which posted losses over the past five years because of a decline in demand for fixed-line phone service.
He said ISM could leverage ETPI’s fixed-line and data business with other Ongpin group businesses, which include PhilWeb Corp., an Internet-based service provider.
ETPI, which was previously controlled by Cable & Wireless Plc., is one of the oldest telecommunications companies in the Philippines. Its main sources of revenues are the carrier, data, Internet and voice businesses.