ISM Communications to spend P1.23 billion for IT ventures

MANILA, Philippines - Publicly listed ISM Communications Corp. is spending around P1.23 billion for investments in information technology-related opportunities, the company said yesterday.

ISM said it plans to utilize all the available funds raised in the recently concluded P655-million stock rights offering and the $10-million private placement of the Ashmore Group in 2007, together with the remaining funds out of the P300-million stock rights offering in 2007 placed at about P91.7 million.

The company also revealed it is planning to participate in a consortium that will acquire up to 100 percent of a Europe-based information technology company, engaged in the business of providing in-room guest entertainment services for the hotel industry.

The company’s board of directors has authorized management to negotiate and conclude an agreement to participate in the consortium. The price and structure is also still subject to negotiation.

Earlier, ISM received the go-signal from regulators to hike its authorized capital to P2.8 billion from P1.8 billion, majority of which the company plans to invest in other IT businesses.

The Ongpin-led IT company will issue most of the additional capital to investors who participated in the firm’s P655.54-million stock rights offering, documents from the Securities and Exchange Commission (SEC) showed.

The biggest subscribers to the share sale were Ashmore Asian Recovery Fund and PhilWeb Corp., which bought P359.61 million and P166.23 million worth of stocks, respectively.

ISM said proceeds from the offering would be spent for further investments in the IT industry.

“ISM intends to acquire, and/or invest in, several IT business opportunities that will complement its existing investment in ETPI,” the firm said, referring to Eastern Telecommunications Philippines, Inc. which the company acquired in 2005.

The IT firm said it was scouting for other opportunities, citing a possible investment in an interactive entertainment company. The company is eyeing four investment prospects in the information and communication technology sector but did not provide details.