ISM Communications raises capital stock to P1.2 billion

The Securities and Exchange Commission has approved the increase in the authorized capital stock of ISM Communications Inc. from P300 million to P1.2 billion.

The new capitalization consists of 120 billion shares with a par value of one centavo.

ISM is 40 percent owned by Philweb Inc., which is headed by the group of former Trade and Industry Minister Roberto V. Ongpin.

The capital hike allows ISM to convert the advances from prospective investors into equity.

ISM was originally a mining company incorporated under the name Itogon-Suyoc Mines Inc. before a memorandum of agreement gave Philweb the right to manage the transformation of ISM into a company engaged in information technology, multimedia, telecommunications and similar industries.

It also owns more than 50 percent of Eastern Telecommunications Philippines Inc. (ETPI), which provides fixed-line services such as broadband Internet and data transmission.

ISM views ETPI 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 is optimistic it can turn around ETPI, which has posted losses over the past five years because of a decline in demand for fixed-line phone service.

ISM could leverage ETPI’s fixed-line and data business with Philweb, 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.