Ongpin taps ISM as vehicle for PBCom bidding

MANILA, Philippines—ISM Communications Corp., a publicly-listed firm once used by former Trade Minister Roberto V. Ongpin as a holding firm for niche telecom interests, will be tapped by the group’s vehicle to bid for medium-sized Philippine Bank of Communications.

PBCom confirmed in a disclosure to the Philippine Stock Exchange on Monday that ISM was “one of the parties interested” in the bank. “There are ongoing talks with various third party investors interested in investing in the bank,” PBCom corporate secretary Bernard Lopez added.

ISM shares were up in early trade and in heavy volume and gains widened to 2.2 percent to P4.12 per share as of 11:50 a.m. as soon PBCom confirmed ISM’s interest in the bank.

But Lopez said PBCom had no knowledge as to whether any of the prospective investors had initiated talks with Philippine Deposit Insurance Corp., which had backed the bank’s rehabilitation in 2004.

Apart from Ongpin’s group, Inquirer reported on Monday that the country’s largest lender Banco de Oro Unibank had also sent some “inquiries” on the bidding. At least two other banks— Security Bank and East West Bank–that had participated in the earlier bidding for PBCom may also consider rejoining this new round, other banking sources said.

PBCom is up for rebidding at a floor price of about P4.3 billion or about P25 per common and preferred share. The Macquarie group is advising PBCom’s controlling stakeholders on the sale. The deadline for prospective new investors to submit a buyout offer is on June 15.

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