8990 Group sets tender offer for IP Converge shares

MANILA, Philippines - Property developer 8990 Group of Companies is set to launch the tender offer for the remaining 20-percent stake of information technology (IT) firm IP Converge Data Center Inc. held by minority shareholders.

A disclosure to the Philippine Stock Exchange yesterday containing the tender offer report filed with the Securities and Exchange Commission showed that the bidders, 8990 Group of Companies, will be offering to acquire 45.467 million common shares of IP Converge at a tender offer price of P0.9524 per share.

“The tender offer period starts on June 22, 2012 at 9:30 a.m., and ends on July 19, 2012 at 4 p.m.,” the tender offer report read.

The mandatory tender offer is being conducted pursuant to the requirement that any person or group of persons with plans to purchase or acquire 35 percent or more of equity shares in a public company will have to make a tender offer to provide minority shareholders option to sell their shares in the company.

The 8990 Group has entered an agreement with the top shareholders of IP Converge, IP Ventures, Inc. and IPVG Employees Inc., to acquire 79.507 percent of the IT firm at P0.9524 apiece.

The 8990 Group is composed of Iholdings Inc., Januarius Resources Realty Corp. and Kwantlen Development Corp.

The 8990 Group is developing 15 projects in Cebu, Davao, Iloilo, Clark, Pampanga and other areas in the country.

The group is also engaged in the operation of resorts and development of hotels.

IP Ventures chief executive officer Enrique Gonzalez said earlier the selling shareholders have yet to decide where the proceeds of the share sale would be used.

He also said the 8990 Group is infusing over P7 billion in real estate assets into IP Converge.

He said the transaction is expected to result in record high revenues and net earnings for IP Converge.

The 8990 Group is looking at a net income of at least P500 million this year.

Last year, IPVG completed the transfer of its operating assets, which includes IP E-Games and IP Converge, to private firm IP Ventures in line with a restructuring plan approved by shareholders.