Holding company ISM Communications Corp. said Tuesday it will raise P358.1 million from the sale of treasury shares to explore investment opportunities.
ISM said in a disclosure to the stock exchange its board approved the sale of 358.1 million treasury shares to existing shareholders of record as of Feb. 5 at a ratio of 1:2 and at a price of P1 per share.
The selling price represents a 30-percent discount to the stock’s closing price of P1.43 on Tuesday.
“ISM intends to increase its cash reserves in preparation for certain investment opportunities, currently being evaluated by management,” ISM said.
“The sale of these shares will also provide ISM the opportunity to track down its dormant shareholders as part of its corporate housekeeping activities, and improve the liquidity of the tradable shares,” it said.
Offer period for the treasury shares will be on Feb 9. to March 1. Cross date was set on March 7 while settlement date was scheduled on March 11.
ISM conducted a tender offer last year to buy the shares held by the investing public at P1.52 apiece.
The tender offer came after ISM sold most of its shares in Philippine Bank of Communications to the group of retailer Lucio Co.
ISM was originally incorporated under the name Itogon-Suyoc Mines Inc. to engage in the mining business. In 2002, the stockholders of ISM approved a restructuring plan for the company, which involved the change in corporate name to its present name and change in primary purpose to engage in the business of telecommunications, multimedia and information technology.
The holding firm acquired a controlling stake in PBCom in 2011. In August 2014, ISM accepted the offer Co, through his delegated entity, VFC Land Resources Inc. to purchase ISM’s 59,241,438 common shares of PBC.
As a result of the sale, the company’s ownership of PBCom dropped to 1 percent of the bank’s outstanding capital stock. ISM currently has no operations, other than that of a holding company.