IPVG to receive additional $11.5 million from Hong Kong's PCCW

MANILA, Philippines - The board of publicly-listed IT company IPVG Corp. has approved the second tranche payment proposal by PCCW Teleservices, an indirect wholly-owned subsidiary of Hong Kong’s premier telecommunications provider, PCCW Ltd., for the acquisition of call center unit IP BPO Holdings Pte. Ltd.

The second tranche payment, amounting to $11.5 million, will be made pursuant to the sale and purchase agreement dated Oct. 28, 2008 as amended by the supplemental agreement relating to the issued share capital of IP BPO Holdings on Aug. 4, 2009 among IPVG Corp., IPVG Investment Holdings Inc. and PCCW Hong Kong.

IPVG received the first payment amounting to $10 million in August 2009 from PCCW for the acquisition of IP BPO Holdings.

IP BPO Holding holds a 70-percent equity interest in each of Interactive Teleservices Corp. in the US and BPO Teleservices Inc. in the Philippines.

Interactive Teleservices provides contact center services from a network of six English-speaking centers in Ohio and Nebraska and one Spanish-speaking center in Panama.

BPO Teleservices, on the other hand, operates two contact centers in Manila providing services to US companies.

Both firms serve customers from the banking and finance, IT, consumer electronics and travel sectors.

In relation to the approval of the terms and conditions of the second tranche payment, IPVG’s board also approved the requirement of capitalization of its advances amounting to P22.5 million into equity in PCCW Teleservices (Philippines) Inc. (PCCWP) without impact on the current shareholdings ratio.

The board likewise approved the amendment of the subscription agreement with PCCWP increasing the subscription price of the corporation’s subscription to 857,143 shares in PCCWP, from P76.1235661 per share to P102.4096059 per share.