IPVG increasing budget for acquisition plan
Diversifying technology firm IPVG Corp. is increasing the price it plans to pay to acquire 100 percent of a company that operates or plans to operate mineral refineries in China and India, two of the world’s leading emerging markets.
Earlier this year, IPVG, which spun off its technology-related assets to an affiliate last year, said it would spend P2.8 billion for New Wave Resources, which has a strategic relationship with a leading designer, builder and operator of refineries in China.
But in a board meeting this week, IPVG said its board agreed to pay a higher price, given the company’s brighter expansion prospects.
“The board met to approve the increase in the (amount earmarked) for the New Wave Resources acquisition due to the additional territory (India) in which New Wave will be establishing and operating a refinery,” IPVG said in a disclosure.
The acquisition will be made through IPVG affiliate Conquer Space Ltd. The company told the local bourse that the transaction would be put up to a vote during a special stockholders’ meeting on April 17.
“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 previous disclosure.
To pay for the purchase, IPVG said it would issue 2.8 billion new shares at P1 each—to be subscribed to by a still unnamed Chinese-Canadian firm.
This will boost IPVG’s capital base to about 3.6 billion shares.
In the same board meeting, IPVG said it had approved the issuance of 23.5 million new shares at P1.16 each to affiliate GEM Global Yield Fund Ltd. This was lower than IPVG’s Wednesday closing price of P1.30 a share, down 2.25 percent from the day before.
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.
