IPVG acquires New Wave Resources

MANILA, Philippines -  IPVG Corp. has signed a memorandum of understanding to acquire 100 percent of New Wave Resources, a company affiliated with a leading refinery in China, for P2.8 billion.

In a disclosure to the stock exchange yesterday, IPVG said the MOU is subject to the approval of shareholders, completion of due diligence and a valuation report from an independent third party.

As part of the agreement, Conqueror Space will subscribe to P2.8 billion worth of shares of IPVG at P1 apiece to allow the latter to finance the acquisition. The shares will come from the increase in IPVG’s authorized capital from P2 billion to P10-billion shares as approved by the board on Jan. 20, 2012.

 “This acquisition gives IPVG exclusive rights over a strategic relationship with a leading builder and operator of refineries in China,” IPVG said.

IPVG chief executive officer Enrique Y. Gonzalez said the company will hold a board meeting in April to approve the transaction, the increase in its authorized capital, and issuance of new shares.

The board will likewise move to change the corporate name and reconstitute its board, officers and committee members to reflect changes in ownership of IPVG as well as its new business direction.

 “The new evolution of IPVG which is entering a growing and highly specialized sector should generate tremendous value for its stakeholders. We are working hard to complete the transaction and will be making appropriate disclosures upon reaching material milestones,” Gonzalez said in a text message.

To carry out the refinery business, IPVG has resolved to change the company’s primary purpose to allow it to establish “a refinery in the Philippines to refine metal ores, precious stones, oil, gas, coli and minerals intended primarily for export purposes.”

This latest development followed the successful restructuring of IPVG last year, which involved the sale of all or substantially all of its assets to a new privately-held firm, IP Ventures Inc.

IP Ventures Inc. has the exact same ownership structure as that of IPVG.

Among the assets transferred to IP Ventures include IP E-Game Ventures (the group’s online gaming subsidiary and operator of the largest network of internet cafes in the Philippines, IP Converge Data Center Inc. (the only listed data center company on the PSE) and I-Pay Commerce Ventures Inc. (the fastest growing direct agent of Western Union in the Philippines).