ISM Communications Corp. plans to sell its 32.5-percent stake in Acentic GmbH of Germany as the company looks for new investment opportunities after raising fresh capital from the recent investment of businessman Dennis Uy and Singapore-based Accion Common Development Fund.
ISM chairman and chief executive Eric Recto said in an interview at the sidelines of a special stockholders’ meeting the company was considering selling the holdings in Acentic GmbH by next year.
“That would be the ideal scenario selling it by 2019 but until a process has officially started, it is hard to be firm about that. But we don’t want to keep Acentic under the new management,” Recto said.
ISM in 2010 acquired a stake in Acentic GmbH, which provides internet connectivity and inter-room entertainment solutions for the hospitality industry.
Recto said the planned sale of Acentic Gmbh was in line with the company’s thrust to look for new investment opportunities in the country using close P2.5 billion in fresh capital raised from sale of shares to Uy and the Singapore-based equity fund.
While there were some market speculations that Uy might use ISM for his planned venture into telecommunications industry, Recto said the company as of the moment was not engaged in telecommunications.
Recto, however, said the company was open to a possible investment in the business.
“If we come across one we would consider it. But I am not confirming that we are involved in telco business right now,” Recto said.
Uy through Dennison Holdings Corp. in August acquired a 45.13-percent interest in ISM for P1.28 billion. ISM also agreed to sell P1.22 billion worth of treasury shares to the Singapore-based equity fund.
“We could look for more substantial and more compelling investment which we believe will come our way especially now the economy is in a bit of crossroads. We see quite a number of opportunities and we just want to be in good position to respond to these opportunities,” Recto said.
