MANILA, Philippines - LINQ Information Entertainment Quadrant Corp., a private equity group focusing on strategic investments and strategic alliances and collaboration in the new media, digital media, and emerging media space in the Asia-Pacific region, has acquired majority control of MegaMobile Inc., the mobile communications subsidiary of publicly-listed IT company IPVG Corp.
Under the investment agreement, IPVG will issue new shares to be acquired by LINQ, representing 30 percent of the outstanding shares of MegaMobile, plus another 40 percent from the original shareholders (post infusion) by way of secondary purchase.
The principal shareholders in this transaction are IPVG and the original shareholders of MegaMobile.
Upon completion of the transaction, the shareholding pattern of MegaMobile would be 70 percent for LINQ and 30 percent for MegaMobile’s original shareholders.
MegaMobile is a fast growing mobile value-added services (VAS) enabler and aggregator with its own unified access code across all the mobile carriers in the Philippines.
The company is focused on delivering compelling content and innovative applications to mobile communities.
Company officials said MegaMobile has successfully earned strategic partnerships with well known content owners and media companies by providing revolutionary services.
LINQ is a private equity group in the Philippines with presence in Singapore. Its proponents, which include the principal shareholders of the Inquirer Group of Companies and the Print Town Group, have more than two decades of experience in both traditional and non-traditional media and publishing businesses.
IPVG earlier said that it is redefining its core businesses that are high growth and high margin where the company has a strategic differentiator and is selling its non-core businesses to streamline corporate focus.
It added that it has been raising cash, reducing its debt, strengthening its balance sheet and is maintaining growth and profitability of its core businesses.
For the first six months of 2009, IPVG posted net income before taxes of P24.3 million, 55.6 percent lower than the P54.8 million generated in the same period last year. Gross and net revenues during the period were up 1.4 percent and 3.2 percent, respectively.