IPVG spins off subsidiaries

Listed IPVG Corp. has spun off its operating subsidiaries as the holding company takes a different direction, seeking new investors that can bankroll ventures into new and more profitable industries.

The subsidiaries, including IP E-Games Ventures and IP Converge Data Center, will be operating under a new private company. Shareholders of IPVG will also be given shares in the new holding firm.

“The purpose of the restructuring plan is to increase shareholder value and raise cash for the group,” IPVG president and CEO Enrique Y. Gonzales said in a statement.

“At present, IPVG’s current share price is not reflective of the underlying value of the company,” Gonzales said.

By spinning off its units, IPVG will be able to take in new investors who may not necessarily be willing to infuse cash into the subsidiaries.

The restructuring plan was approved by shareholders at their annual meeting last Friday.

“We will find a way to monetize our listed shell. This restructuring will make us more attractive to private equity players out there,” Gonzales told reporters after the stockholders’ meeting.

Gonzales was mum on the nature of the new investments, saying the company had several options and had been in talks with several groups.

In the meantime, Gonzales said the company would also continue to grow its operating units.

The strongest performer for the company so far this year, he said, was IP E-Games. The firm’s revenue has been boosted by its recent acquisition of Internet café chains.

“We’re very focused on growing our consumer Internet business. That’s our investment focus. We believe the consumer Internet sector is going to grow by leaps and bounds over the next few years,” Gonzales said.

He said Internet cafes remained one of the main avenues for Filipinos going online, adding that this was the way for over 70 percent of the country’s users access the Internet.

He said IP E-Games would conduct its IPO before the end of this year, listing at least 20 percent of the company’s outstanding shares. IP E-Games currently has a market capitalization of P2.9 billion.