IPVG Corp. has subscribed to shares in its data center subsidiary to help its unit raise funds for working capital.
In a disclosure to the Philippine Stock Exchange, IPVG said it bought 40 million shares of IP Converge Data Center Inc., representing an 18 percent stake in the company, at P2.52 each per share for a total consideration of P100.80 million.
“It will result to the increase of funds for working capital given the upcoming launch of IP Converge’s new data center in Fort Bonifacio,” IPVG said.
IPVG will pay an initial P25 million in cash and the balance of the subscription price will be settled upon the discretion of the IP Converge board.
Prior to the transaction, IPVG indirectly owned 68.18 percent of the outstanding capital stock of IP Converge.
After the transaction, the company’s public float will be reduced from 22.44 percent to 18.39 percent.
IP Converge, which debuted at the local bourse last year, is set to open the new data facility this month. It will provide customers with a full-suite of cloud services.
Another IPVG unit, IP E-Games Ventures Inc., said it spent P48 million to acquire 60 percent of the outstanding capital stock of Webworx Computer Technology Corp., the operator of the Cybr brand of Internet cafes.
E-Games subscribed to 375,000 common shares at a subscription price of P128.00 per share in Webworx, one of the largest and fastest-growing networks of Internet cafes in the country with 18 company-owned and five franchised branches.
The acquisition is expected to boost the plan of E-Games to have a network of 1,000 Internet cafes in the next two to three years, generating system-wide revenues estimated at P5 billion a year.
IPVG shares were unchanged at P1.33, while IP Converge shares dropped to P2.52 on Tuesday from P2.54 each on Monday. E-Games shares rose to P27.70 from the previous day’s P27.50.
