Philweb to acquire additional ISM Communications shares

Information technology and online gaming firm Philweb Corp. has agreed to acquire the 10.9-percent stake held by Hong Kong-based Softbank Investment International (Strategic) Ltd. in ISM Communications Corp. for $1.43 million.

In a disclosure to the Philippine Stock Exchange, Philweb said it would acquire 2.29 billion shares in ISM, payable in four equal tranches every three months from the date of the agreement.

With the acquisition, Philweb’s ownership in ISM will increase to 40 percent.

Philweb is 20-percent owned by ePLDT Inc., the information and communications technology unit of Philippine Long Distance Telephone Co.

ISM, on the other hand, holds a 57.7-percent stake in Eastern Telecommunications Phils. Inc., which provides fixed-line services such as broadband Internet and data transmission.

It considers Eastern Telecom as central 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.

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.

Philweb, meanwhile, provides access, business solutions, e-commerce platforms, distribution services for Internet appliances and software and invests in promising Internet start-up ventures.

Philweb has earmarked about P200 million for its nationwide text-based raffle program and the construction of 60 new Internet casinos.

The company expects to make a turnaround in its financial performance this year with several projects in place, particularly Premyo sa Resibo. From a net loss of P3.9 million in 2005 due principally to write-offs of costs associated with discontinued non-gaming business, the company is seen to post a net profit of P100 million by the end of the year.

It also hopes to end the year with a total of 100 Internet casinos.

Managed and operated by Pagcor-authorized entities, these gaming outlets are entertainment centers similar to Internet cafes that have at least 10 PC terminals dedicated solely to playing eCasino-Filipino games, open 24 hours daily.