IPVI offers to buy out sister firm’s minority owners

IP Ventures Inc. has offered to buy out the minority shareholders of sister firm IPVG Corp. to give investors who disapprove of its restructuring a way out.

In a statement, IPVI said it would conduct a voluntary tender offer for 40 million shares of listed firm IPVG (about 5 percent of outstanding capital) for P1.70 per share, slightly lower than the P1.72 share price when its trading was suspended last month.

“The tender offer is intended to provide an exit opportunity for IPVG’s minority shareholders,” IPVI said.

Under its restructuring plan, IPVG transferred all of its assets to IPVI, a new firm that was incorporated by the majority shareholders of IPVG. It has the exact same ownership structure as that of the IPVG.

IPVG assets that are now under IPVI include listed firms IP Converge Data Centers Inc. and IP E-Games Ventures Inc. This was done to make IPVG, now left as a listed shell company, more attractive for potential investors engaged in different lines of business.

“We are now making a voluntary tender offer for those who want to cash out and exit,” IPVG CEO Enrique Gonzales said in a statement.

“On one hand, we should see increasing valuations in their holdings of our stock. On the other, we are providing an exit mechanism if they want one. This addresses both long-term and short-term concerns,” he said.

The offer period runs for 20 business days beginning at 9:30 a.m. of October 13 to 1 p.m. of November 14.

Businessman Enrique Razon Jr., who is shopping around for a backdoor-listing vehicle for an ongoing $1.3-billion integrated gaming and tourism project at the Pagcor-initiated Entertainment City along Manila Bay, was among those interested in taking over IPVG, industry sources said.

Gonzales, when asked about the possibility of Razon’s investment, did not rule out a deal, but said nothing “definitive” had been reached yet.