MANILA, Philippines - ISM Communications Corp., led by former trade minister Roberto Ongpin, has signed an agreement to acquire Philippine Bank of Communications (PBCom), marking its entry into the banking industry.
Under the agreement, ISM will acquire 97.28% of PBCom from three major bank shareholders -- the Chung, Luy and Nubla families -- for P4.68 billion. The transaction is subject to regulatory approvals.
In a special board meeting following the signing, Ongpin was elected as new chairman of PBCom, while ISM president Eric Recto was elected as vice chairman.
ISM won PBCom in a bidding process that was concluded last June 22. PBCom shareholders had to dispose of their stake in the bank as part of a P7.6-billion financing agreement with the Philippine Deposit Insurance Corp. in 2004.
PBCom is the Philippines' 22nd largest bank with 64 branches nationwide.