ISM board approves sale of treasury shares to unit

ISM Communications Corp. is selling treasury shares to give the holding firm some flexibility to finance possible investments and issue cash dividends.

In a disclosure to the stock exchange on Wednesday, ISM said its board of directors approved the sale of 560 million treasury shares to wholly owned subsidiary ISM Equities Corp. at a price of P1 per share.

“This transaction is meant to give ISM flexibility to restructure its capital position more easily to address potential investment opportunities,” the listed firm said.

After evaluating the company’s financial position, ISM also directed management to consider the declaration of cash dividends after factoring in the retained earnings position of the company following the restructuring of its capital position.

ISM has no operating business, but it has interests in various companies.

ISM holds a 32.5% stake in German technology firm Acentic Gmbh, a provider of Internet connectivity and in-room entertainment solutions for the hospitality industry.

The listed company also owns 4.8 million shares of Philippine Bank of Communications ( PBCom), equivalent to 1% of the lender’s outstanding capital stock.

ISM also acquired in 2011 a 10% equity interest in Alpha Force Security Agency, Inc., according to a regulatory filing.

ISM widened its net loss to P269.80 million last year from P13.32 million in 2016 due to higher equity in net losses of an associate.

ISM was originally a mining company incorporated in 1925 under the name Itogon- Suyoc Mines, Inc. In the early 2000s, ISM was transformed to a company engaged in information technology, multimedia telecommunications, and other similar industries.

In 2016, the Securities and Exchange Commission approved the amendment of the articles of incorporation of ISM to reflect its primary purpose as a holding company.

In 2014, ISM raised P1.95 billion from the sale of 59.24 million common shares in PBCom at P33 per share to retail tycoon Lucio L. Co, the owner of the Puregold chain of grocery stores.

Shares in ISM added six centavos or 4.38% to end at P1.43 each on Wednesday. —