Razon's Bloombury set to take over IPVG

MANILA, Philippines - Bloombury Investments Holdings Ltd., a company owned by port king Enrique Razon Jr., is reportedly close to finalizing a deal with the owners of technology and gaming conglomerate IPVG Corp. to acquire two-thirds of the publicly-listed technology holding firm, as it aims for a backdoor listing on the Philippine Stock Exchange.

A source privy to the deal said both parties are expected to announce something within the week, which would involve Bloombury taking over IPVG.

“There will be a series of transactions. The deal will give Bloombury 67 to 70 percent of IPVG,” the source said.

Bloombury is one of the four companies that have been granted provisional license to establish and operate a gaming complex inside the 120-hectare Pagcor City, which is envisioned to become the country’s biggest tourism development.

Being listed on the stock exchange will provide Bloombury a wider net into the capitalization pool, giving it exposure to a larger financial market and wider range of investors.

IPVG recently completed a restructuring program, which involved the transfer of virtually all of its technology and gaming assets to a newly-formed private holding company, IP Ventures Inc. The plan, which is aimed at boosting sharheholder value and generating cash for the company’s shareholders, would facilitate the entry of new investors and the infusion of an “attractive business asset.”

Asia is in the midst of a gaming boom and the Philippines is itching to be part of the game to compete with neighboring Singapore, Malaysia, Vietnam and Cambodia.

Razon, through Bloombury, has placed a bet on the casino industry with the Asia Pacific offering many opportunities and strong potential.

Bloombury has infused $350 million into a hotel complex within Pagcor City along Roxas Boulevard. The company would invest an additional $200 million in the first phase of the project, slated for completion by the end of 2012.

The complex will include two five-star luxury hotel towers of over 1,000 rooms.

Razon is one of the newly-minted billionaires in Forbes list of the super rich this year, seeing its net worth hump to $1.6 billion from $975 million last year.      

Under IPVG’s restructuring plan, minority shareholders will receive shares of the new company by way of donation from IPVG majority shareholders.

IPVG closed at P3.48 yesterday, two centavos lower than Tuesday’s close of P3.50 each share.