IP E-Game Ventures divests shares in Netopia operator

Interactive gaming and content distribution firm IP E-Game Ventures Inc. (EG) divested itself from Netopia operator Digital Paradise Inc. (DPI), involving P62 million worth of shares.

The company saw no point in holding on to DPI shares after Digital Paradise DPI reported a drop in the demand for internet cafes, given the proliferation of free Wi-Fi locations in the county, as well as portable gaming devices and the shift in consumer preference towards mobile devices.

“All this has caused a significant reduction in the demand for internet cafes, and a downward trend in DPI’s sales, transactions per store and number of stores—all of which justify the issuer’s exit from this industry,” EG said.

In a regulatory filing submitted by EG corporate secretary Albert Vincent Yu Chang, the company noted its decision to divest 62,928,454 shares in DPI at a par value of P1.00 per share.

“While the revenues of EG decreased from P188 million in 2016 to P0.00 in 2017, DPI’s total comprehensive losses also increased sharply from P4 million in 2016 to P43 million in 2017,” it added.

DPI operates Netopia-branded internet cafes, with almost 180 internet cafes across the country during its peak in 2006. In the last quarter of 2018, however, only 14 cafes were operating.

The DPI shares involved in the divestment were conveyed to Y-Fi Business Solutions Inc. for a total price of P62,928,454.

“There were no other buyers willing to acquire the shares for a higher value given its financial performance the year prior to the divestment,” said EG.

EG also has exposure in X-Play Online Games Incorporated, a joint venture company engaged in the business of designing, operating, and maintaining casual online gaming and other related portals. —VDS, GMA News