MANILA, Philippines - Listed technology conglomerate IPVG Corp. said yesterday it has completed the sale of its business process outsourcing (BPO) unit, IP BPO Holdings Pte. Ltd., to PCCW Teleservices for $22 million.
In a disclosure to the Philippine Stock Exchange, IPVG said it received the full payment yesterday following the settlement of the second tranche payment amounting to $11.5 million from PCCW Teleservices, an indirect wholly-owned subsidiary of Hong Kong’s premier telecommunications provider, PCCW Ltd.
Enrique Y. Gonzalez, chief executive officer of IPVG, said proceeds from the sale will be used to pay down debt as part of efforts to strengthen the company’s balance sheet.
“We are very pleased with the operating and financial performance of our BPO business which is evident in the strong EBITDA registered for the monitoring period. It indicates recovery in the overall economy and positive growth in our sector. The satisfactory conclusion of the second tranche and deal with PCCW is a major milestone for our company,” Gonzalez said.
“Given the strong performance of the business, we are very optimistic of its growth prospects moving forward.”
Prior to the acquisition, the BPO holding company of IPVG held a 70-percent stake in US-based Influent. IPVG currently holds a 30-percent stake in PCCW Philippines, a leading player in the country’s BPO industry and operates two contact centers in Manila providing services to US companies.
IP Converge Data Center Inc., the information technology and telecommunications subsidiary of IPVG, is planning to raise up to P400.1 million through an initial public offering (IPO) of shares which will run from Nov. 25 to Dec. 2. The domestic roadshow will kick off on Nov. 15 until 23 while listing has been tentatively set on Dec. 9.
IP Converge is selling around 45.466 million shares at a maximum price of P8.80 per share that would give it a market capitalization of as much as P1.6 billion.
BDO Capital & Investment Corp. is the lead issue manager and underwriter while Unicapital Inc. is co-lead underwriter and financial advisor for the IPO.
The company intends to use proceeds from the share sale to fund its data center and network expansion in Fort Bonifacio and Cebu City; the expansion of its managed services business segment; the professional services business segment expansion; and for minor acquisitions and general working capital requirements.