ISM Communications Corp. is being transformed as the listed telecommunication company of businessman Dennis Uy.
ISM president Dennis Uy said during the annual stockholders meeting the company would soon be renamed DITO CME Holdings Inc. and would become Udenna Group’s corporate vehicle that will own a 60-percent equity in DITO Telecommunity, the country’s third telecom player.
Uy said DITO CME Holdings would also invest in other related businesses that have synergies with Udenna Corp., the unlisted holding company of the Davao-based businessman.
“DITO CME will be focused on investments in telecom venture. The asset planned to be injected by Udenna will be its investment in telco business. We think this will present better value to current and prospective ISM shareholders,” Uy said.
Uy said the asset injection was expected to be completed by mid-2020 subject to regulatory approval. The corporate structure of ISM will be finalized after the asset injection.
ISM obtained shareholders’ approval to increase its authorized capital stock to P40 billion from P2.8 billion.
ISM was earlier seen as the backdoor listing vehicle for Udenna Corp. ISM shareholders approved in January to change its corporate name to Udenna Holdings Corp. and increase its authorized capital stock to P75 billion. That plan was superseded by this latest move.
ISM director Adel Tamano said that once the asset injection was completed, the company would conduct a fund-raising activity through equity offering or private placement.
ISM shareholders also approved the acquisition of Udenna Communications Media and Entertainment Holdings Corp., which is intended to be the parent entity that holds the Udenna Group’s shares in telecommunications, media and entertainment businesses.
Tamano said DITO CME would invest in related businesses like media, entertainment and e-sports to complement its telecom business.
Udenna is a well-diversified company with investments in petroleum product distribution through the Phoenix brand and convenience store and related businesses through Phoenix Petroleum; shipping, tankering and logistics through Chelsea Logistics; property development and leasing through Udenna Development; educational institutions and restaurant operations through Enderun; infrastructure through Udenna Infrastructure; and tourism and gaming through PH-Resorts.