Udenna founder to invest in ISM Communications via private placement

Davao-based businessman Dennis Uy is investing in listed information technology firm ISM Communications Corp. through a private placement.

ISM’s board of directors has authorized its executive committee to raise funds by issuing 841,945,107 treasury shares and 883,730,659 unissued shares from its authorized capital stock.

The executive committee has 90 days to exercise the authority granted by the board.

The shares were priced at a minimum of P1.45 per share. The price is equivalent to a 20 percent discount to the 60-day volume weighted average price of ISM.

“One of the investors who have committed to participate in the private placement is Mr. Dennis A. Uy, the founder of the Udenna Group of Companies,” ISM said in a regulatory filing submitted by corporate secretary Jovita Larrazabal on Friday.

Udenna Corp. is a holding company with interests in petroleum retailing, shipping, and logistics. It also has interests in real estate, education, leisure, gaming and tourism, and infrastructure. 

ISM sought a voluntary trading halt on Friday at 11:20 a.m. until 9:00 a.m. on Monday, June 25.

“ISM intends to use the proceeds of this issuance to fund investment opportunities currently being pursued by management,” it said. —Ted Cordero/VDS, GMA News