ISM to join consortium in acquiring European IT firm

Listed ISM Communications Corp. wants to participate in a consortium that will acquire up to 100% of an information technology firm based in Europe.

In a disclosure to the Philippine Stock exchange, the company said its board has given the go signal to negotiate and conclude an agreement with the consortium that will own the foreign IT firm engaged in the business of providing in-room guest entertainment services for the hotel industry.

For investments in IT-related opportunities, ISM said it will utilize funds raised in its recently concluded P655-million stock rights offering and the $10 million private placement of the Ashmore Group in 2007 as well as the remaining P91.7 million proceeds of its P300-million stock rights offering undertaken the same year.

Earlier, ISM chairman Roberto Ongpin said the company is financially liquid. "ISM now sits on a pile of money. We have P1.2 billion in retained earnings. We are looking at a number of very important investment opportunities in the ICT (information and communications technology) arena," said Ongpin at the company's annual meeting last May.

These possible investments include an international stock trading mobile applications provider and a media technology service provider. Both companies have successful track records and have significant technological innovations that can be leveraged into a critical first-mover status in the country, said Ongpin.

ISM's principal asset is Eastern Telecommunications, the country's oldest phone company.

In 2008, ISM recorded P301.1 million in net income, of which Eastern Telecom contributed P120.4 million.