ISM Communications Corp. has agreed to sell P1.22 billion worth of treasury shares to a Singapore-based equity fund.
ISM Communications said in a disclosure to the stock exchange its board approved the sale of 841.945 million treasury shares to Accion Common Development Fund SPC at an offering price of P1.45 apiece.
The shares are equivalent to 30.07 percent ISM Communications’ outstanding capital stock.
“The Executive Committee mandated the company’s management to execute the sale and purchase documents no later than the end of September 2018,” the company said.
At least 25 percent of the P1.22 billion worth of shares will be paid upon purchase and the balance before the end of the year.
Accion is a special purpose company owned, controlled and managed by Accion Management Pte. Ltd., a registered fund management company based in Singapore. It invests in growth-stage companies in Asia with strong fundamentals.
This is the second share sale conducted ISM Communications this month. Early in August, ISM Communications reported that Dennis Uy-led Dennison Holdings Corp. was acquiring a 45.13-percent interest in the company for P1.28 billion.
Uy is buying the company’s 883.730 million unissued common shares also at a subscription price of P1.45 apiece.
The shares subscribed by Dennison were equivalent to 45.13 percent of the resulting outstanding capital stock of the company.
With the two sale transactions, the company will raise P2.5 billion in total proceeds.
ISM Communications said it planned to use the proceeds of the issuance to fund the investment opportunities being pursued by management.
ISM Communications is seeking the approval of shareholders to change its corporate name to ISM Holdings Corp. after a revision in the company’s primary purpose to that of a holding company in 2016.
The company was originally incorporated as a mining firm.
ISM Communications owns 32.5 percent of German technology firm Acentic GmbH, a leading provider of internet connectivity and in-room entrainment solutions for the hospitality industry.