MANILA, Philippines - IPVG Corp. has entered into an initial agreement with a leading producer and exporter of premium seafood and aquaculture products as it positions itself as a pure play in natural resources investments.
IPVG, however, declined to name the seafood producer due to a confidentiality agreement, as both parties have engaged advanced talks including due diligence.
“IPVG’s new strategic direction is in natural resources. The Philippines is rich in agriculture and aquaculture and has a large export market, and domestic demand for seafood. The plan is to expand our primary purpose to include these activities and to make an acquisition in this sector,” said IPVG chief executive officer Enrique Gonzalez.
The contemplated deal may involve the issuance of primary shares, the sale of secondary shares and the acquisition of profitable business assets, IPVG told the Philippine Stock Exchange yesterday.
Last May 22, IPVG shareholders approved to amend the firm’s by-laws to allow the company to engage in the business of refining metal ores and other minerals in the country. “The move was IPVG’s initial step into establishing the company as a natural resources play,” it said.
The company, together with Canadian firm REC, will build a $250-million refinery in the Philippines that will have a production capacity of 3,000 metric tons of refined mineral by 2015. The finished product is used in several industries including high technology applications and green technology.
IPVG intends to export most of its finished product to countries such as Japan, Korea, the US and Europe, where the product is in high demand.
In March, IPVG, through its affiliate Conqueror Space Ltd., also signed a memorandum of understanding with REC to build and operate a similar mineral refinery in India. This facility will allow IPVG to expand in potentially larger, more lucrative markets.