Ongpin-led ISM takes control of PBCom

MANILA, Philippines - ISM Communications Corp., a publicly-listed IT and gaming firm controlled by businessman and former Trade Minister Roberto Ongpin, has won the bidding for a majority stake in mid-sized commercial bank Philippine Bank of Communications (PBCom).

In a disclosure to the Philippine Stock Exchange yesterday, PBCom’s corporate information officer Bernard Lopez said the bank’s three major shareholder groups - the Nubla, Chung and Luy families – have selected ISM as the bank’s strategic third-party investor, subject to regulatory approvals.

MacQuarie Capital (Singapore) Pte Ltd., the financial adviser in the PBCom sale, earlier identified ISM as the only bidder that has complied with the bidding requirements for the June 22 auction of the 67-percent stake in the bank.

Two other groups, one led by accounting veteran Jose Araullo and the Malayan Integrated Industries Corp., also submitted their respective bids.

In a separate disclosure to the PSE, ISM’s corporate information officer Rodolfo Ponferrada said all terms and conditions for the company’s investment in PBCom, including the scheme of payment for the purchase price, are still subject to regulatory approvals and appropriate documentation.

PBCom, the country’s 22nd largest commercial bank, was sold at a floor price of P4.3 billion or about P25 per common and preferred share. The bank has 64 branches, majority of which are located within Metro Manila.

The Nubla, Chung and Luy families hold a combined 97 percent stake in PBCom but had to dispose of their shareholdings as part of an agreement with state-run Philippine Deposit Insurance Corp. (PDIC) following the bank’s rehabilitation in 2004. PBCom received a P7.6-billion financial assistance package from PDIC.

ISM was formed by the Ongpin Group in 2002 as a holding company primarily for their IT, telecom and gaming businesses. The group also includes local gaming conglomerate PhilWeb Corp. and British investment fund Ashmore Group Plc.

The PBCom takeover marks the first time the group has invested in a banking institution. It earlier acquired majority control of Eastern Telecommunications Philippines Inc. and Acentric Gmbh, a logistics company for hotel in-room entertainment systems and services.