Firm acquires foreign company to refine oil, minerals for export

Listed firm IPVG Corp. has signed a deal for a venture in the business of refining metals and oil products—the latest development in the company’s restructuring program.

In a disclosure, the company said it had approved the acquisition of a “foreign company” for the establishment of a refinery in the country “to refine metal ores, precious stones, oil, gas and minerals primarily for export purposes.”

In line with its new business, IPVG said it had approved the acquisition for P2.8 billion of a foreign company that has a strategic relationship with a leading designer, builder and operator of refineries in China.

“The refinery is expected to produce an economic value-add for the Philippine economy in so far as minerals and metals are concerned,” IPVG said in a statement.

To pay for the purchase, the firm added that it would issue 2.8 billion new shares at P1 each. The company said it would also partner with a Canadian-Chinese firm for the new venture. This will inflate IPVG’s capital base to around 3.6 billion shares.

Trading of IPVG shares, which was halted Thursday after the announcement of the transaction, resumed today. No other details were released.

IPVG earlier spun off its operating units, all engaged in technology-related businesses, in a bid to attract new investors to position the company for new investments.

These units include IP Converge Data Center Corp. and IP E-Games Ventures Inc., which are now owned by privately held IP Ventures Inc.

Earlier this year, IPVG approved the issuance of P400 million worth of equity to be sold at a par value of P1 each through private placement. The company added that it had signed a subscription agreement with BDO Private Bank Inc., which will serve as trustee for the shares.

Previously, IPVG had been rumored to be the acquisition target of the group of Enrique Razon Jr., who was on the lookout for dormant listed firms that could be used to take his casino venture public.

The Razon group later bought into Active Alliance Inc.