by Kristine Liu
BusinessWorld – Corporate News 8/S1
http://www.bworldonline.com/BW110408/content.php?id=045
Nov. 4, 2008

LISTED IPVG Corp. will raise funds by selling stocks to shareholders, apart from ongoing talks with potential investors.

In a disclosure to the exchange, IPVG said its board had approved a plan to sell 57 million shares at a peso each. "We are looking at two scenarios for the shares — either as a private placement or rights issuance," IPVG Chief Executive Officer Enrique Y. Gonzalez said yesterday.

"We have not yet determined which [route we are taking] since we will need to reconvene and discuss [the matter] at our next board meeting," he added.

IPVG earlier said the shares that will be sold would be taken from the company’s authorized capital, which it increased to P1 billion in June from P800 million. The company said it would use the money to fund its expansion and invest in new equipment.

"The increase in authorized capital stock is for IPVG to strengthen its capital base, increase stockholder equity, and allows us to issue more shares down the road when market conditions improve," Mr. Gonzalez told BusinessWorld.

IPVG mainly provides IT services to other telecommunication providers and the corporate enterprise sector. Its services include data center capacity, network systems and E-mail backup, network security disaster recovery, remote access and Internet telephony.

Last week, the stock exchange extended the trading suspension on IPVG shares pending negotiations between the listed firm and potential investors.

The company volunteered to have the trading of its stocks suspended to avoid price movements based on misinformation and undue speculation. — KJRL

By Likha Cuevas-Miel 
Manila Times - Business B1
http://www.manilatimes.net/national/2008/nov/04/yehey/business/20081104bus6.html
November 4, 2008

IPVG Corp. told the Philippine Stock Exchange (PSE) on Monday that it would sell shares to its stockholders as an option to private placement to raise funds.

In a disclosure, the company said its executive committee recommended to the board of directors the approval of a stock rights offering. In an e-mail, Enrique Gonzales, IPVG chief executive, said “we are looking at two scenarios for the said shares, either as a private placement or rights issuance. We have not yet determined which one at this time as we will need to reconvene and discuss in our next board meeting.”

The company is looking at selling each share for not less than P1 and a total of about 57 million shares.

In June, IPVG stockholders approved the amendment to its articles of incorporation and the increase in authorized capital stock from P800 million to P1 billion.

The company, however, clarified that this stock rights offering is not related to the earlier disclosure that it is currently negotiating with private investors that initiated the voluntary suspension of trading IPVG stocks with the local bourse.

On October 21, IPVG asked the PSE for a voluntary suspension to avoid “any misinformation and undue speculation” regarding its talks with two investors “in other jurisdictions, one of which is a listed company.

The company expected to conclude the talks within seven trading days. IPVG later asked PSE for an extension for trading halt until the transactions have been concluded.

By Zinnia B. Dela Peña
Philippine Star - Business B7
http://www.philstar.com/index.php?Business&p=49&type=2&sec=27&aid=2008110383
November 4, 2008

Information technology and gaming conglomerate IPVG Corp. is contemplating on either undertaking a stock rights issue or a private placement of shares as an option to facilitate an increase in its authorized capital stock.

In June, IPVG’s board approved a proposal to increase the company’s capitalization from P800 million to P1 billion.

In a disclosure to the Philippine Stock Exchange, IPVG said its executive committee agreed to recommend to the board of directors the approval of a stock rights offering as an option to the private placement.

IPVG chief executive officer Enrique Gonzalez said the company is looking at two scenarios for the shares – either as a private placement or rights issuance.

He said the company has not yet determined which of the two options it would take at this time as it has yet to reconvene and discuss these in its next board meeting.

Trading in IPVG shares remain suspended upon the request of the company as it moves for the completion of negotiations with possible investors.

“Due to the continuance of our negotiations with third parties, we write to request for an extension of our voluntary suspension until said negotiations and contemplated transactions have concluded,” IPVG said in its letter to the PSE dated Oct. 29.

The trading halt, implemented on Oct. 21, 2008, was supposed to last until Oct. 29.

The suspension is intended to avoid any misinformation and undue speculation while a deal is being worked out, IPVG said.

IPVG likewise disclosed to the PSE that its board of directors decided to amend the purchase price of the subscription to the proposed increase in authorized capital stock of the company from P3 each share to P1 apiece.

The company’s board likewise revised the terms of the issuance of up to 38 million shares to employees and/or its subsidiaries or to a company formed by such employees by authorizing the change in purchase price from P3 to P1 each share.

IPVG has received proposals from two possible major investors which it refused to identify.

The investor may take up a significant stake in IPVG, entitling it to a board seat.

In the six months ending June this year, IPVG posted a net profit of P50.51 million or an increase of 16 percent over the previous level. Revenues reached an all-time high of P1.79 billion on the back of a growing outsourcing business.

Excluding a one-time expense, IPVG’s net income would have increased 121 percent year-on-year to P95.97 million.