Davao-based businessman Dennis Uy is transforming ISM Communications Corp. as his listed holding company to be called Udenna Holdings Corp. through a share swap deal.
ISM said in a disclosure to the stock exchange its board approved the change in the company’s corporate name to Udenna Holdings Corp. and and an increase in the capital stock to P75 billion from P2.8 billion.
ISM plans to issue 24.05 billion shares to shareholders of Udenna Corp. at a price of P3 apiece. In exchange, ISM will obtain 2 billion Udenna shares, representing 100 percent of the outstanding capital stock of Udenna.
ISM has set a special stockholders’ meeting on Dec. 18 to seek shareholders approval of the corporate actions.
Udenna is at the helm of the Udenna Group of Companies. It is in the business of distribution and retail of petroleum products and lubricants under the Phoenix brand and is engaged in shipping and logistics.
The expansion of the group in the recent years has allowed Udenna to expand exponentially and diversify its business portfolio to include real estate and property development, education, leisure, gaming and tourism and infrastructure.
Uy prior to the transaction acquired 45.13 percent of ISM, making him the single biggest shareholder of the company. The acquisition was made through Dennison Holdings Corp., a company beneficially owned and controlled by Uy.
ISM will be the second listed backdoor listing deal involving Uy.
Uy last year also acquired Philippine H20 Ventures Inc. from a a group led by Jolliville Holding Corp. Philippine H2O is now being planned to be the backdoor listing vehicle for Uy’s casino venture under PH Resorts Group Holdings Inc..
Uy has several listed companies, namely Phoenix Petroleum Philippines Inc., Chelsea Logistics Holdings Corp. and 2GO Group Inc.
Share price of ISM on Thursday rose 2.6 percent to P3.21.
ISM was originally incorporated under the name Itogon-Suyoc Mines Inc. to engage in the mining business.
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