IPVG acquires Chinese company

IPVG Corp. announced its foray into the refinery business with the acquisition of a foreign company with ties to a leading refiner in China.

In a disclosure to the Philippine Stock Exchange, IPVG said that it obtained board approval to purchase a firm that has a “strategic relationship with a leading designer, builder and operator of refineries in China for P2.8 billion.”

In line with the transaction, IPVG will also issue 2.8 billion shares at P1 per share and enter into a memorandum of understanding for this purpose.

The listed firm will also partner with a Canadian- Mainland Chinese group to carry out the refinery business.

The company’s executive committee was authorized to approve the final terms and conditions involved in the transaction

The IPVG board also approved the amendment to its Articles of Incorporation, changing its primary purpose that will allow the company, among others, to establish a refinery in the Philippines to refine metal ores, precious stones, oil, gas, coli and minerals intended primarily for export purposes.

The PSE implemented a trading halt on the company’s shares Thursday because of the transaction. Prior to the trading halt, its shares were trading at P1.44 each, up 18 centavos or 14.29 percent from the previous day’s P1.26 apiece.

Last year, IPVG assigned all of its shares in listed units IP EGame Ventures Inc. and IP Converge Date Center Inc. as well as its non- listed subsidiaries to IP Ventures Inc.

By spinning off its assets, the conglomerate was put in a position to accept new investors to finance its ventures into new and more profitable businesses.

IPVG turned in a consolidated net loss before tax of P303 million in the first nine months of 2011 from the previous period’s P27 million, dragged by one- time losses incurred as a result of the company’s restructuring plan.