MANILA, Philippines - Former trade minister Roberto Ongpin's ISM Communications Corp. said on Thursday it will sell its 37.7% stake in Eastern Telecommunications Philippines Inc. (ETPI) to San Miguel Corp., which Ongpin partly controls through Top Frontier Holdings.

In a disclosure to the Philippine Stock Exchange, ISM said it will sell its stake for P1.5 billion, bringing San Miguel's ownership of Eastern Telecom to 75%.

"We wish to inform the Philippine Stock Exchange that today, ISM Communications Corp. entered into a share purchase agreement for the sale of its approximately 37.7% stake in ETPI to San Miguel Equity Securities Inc. for a total consideration of Php1,507,777,692," ISM said.

San Miguel bought its first 40% stake in Eastern Telecom in December.

Eastern Telecom, which provides internet and data transmission services, is one of San Miguel's three telecommunications investments.

San Miguel, which has discussed plans to challenge telecom industry leaders, also owns 100% of Bell Telecommunications Philippines Inc. and 41.5% of Liberty Telecoms Holdings Inc.

ISM earlier this year acquired Philippine Bank of Communications for P4.7 billion.

The new executive committee chairman at the bank is former DBP president Reynaldo David, whose dealings with Ongpin are under investigation by the Ombudsman and the Senate.

(Corrects last paragraph to say David is executive committee chairman, not executive chairman.)