Controlling owners raising stake in IPVG
Amid talks of a possible venture into the highly lucrative casino industry, the controlling shareholders of IPVG Corp. announced a plan to buy out more minority shareholders who wish to sell their IPVG shares.
In a disclosure, the company’s principal owners said they intended to raise their interest in the company to at least 67.45 percent, from the current 58 percent, through the acquisition of 10 million shares from the open market.
IPVG also said its principal shareholders, led by CEO Jaime Enrique Y. Gonzales, entered into an agreement for the voluntary lock-up of their IPVG shares. The lock-up period would be until Dec. 15, 2011, or upon the completion of the implementation of the firm’s restructuring plan, whichever comes first.
Officials declined to say at what price the principal owners would buy the minority shares.
“The action will enable the minority shareholders to have a faster exit from the corporation, apart from the ongoing tender offer being conducted by IP Ventures Inc.,” the company added.
Under the restructuring plan, IPVG’s operating assets, including listed firms IP Converge Data Center and IP E-Games Ventures, were transferred to newly formed IP Ventures. Investors were also given shares in IP Ventures to match their holdings in IPVG.
The restructuring left IPVG as a shell company that can be used for investments in other businesses.
Businessman Enrique Razon Jr. has been reported to be in talks to buy into IPVG and use the listed firm for its gaming company’s plan to go public. This gaming firm, Bloomsbury Investments, is putting up a casino at the Pagcor City in Parañaque.
In a separate disclosure, IPVG said it was still in talks with potential investors, which may or may not include the Razon group.
“While the corporation may be in discussions with particular groups for a potential transaction, and have had in-depth discussions on the proposed terms and conditions, no board approved definitive agreement for a specific transaction has been realized at this point in time,” it said.
“Caution should be exercised by market speculators on rumors that there is an imminent and certain transaction,” it said. IPVG shares reached a record high of P3.87 per share last week amid rumors of Razon’s entry, up from the previous high of about P2.8.
