IP E-Game Ventures Acquires 25% Stake in Cosamera Resorts
Makati–(PHStocks)–IP E-Game Ventures Inc. (PSE: EG), the listed online gaming subsidiary of IPVG Corporation (PSE: IP), has acquired a stake in Cosamera Resorts Corp. Cosamera is a company with primary business in the Cagayan Special Economic Zone and Freeport (CSEZFP). It is in the business of hotel and resort facilities, which shall serve tourists frequenting the Cagayan Economic Zone Authority (CEZA) including visitors to its gaming facilities.
E-Games initial investment will give it a stake of 25% in Cosamera. This is in line with the company’s change in primary purpose to allow activities of hotel, resorts and gaming. In addition, the acquisition of Cosamera shares was approved by the company’s Board of Directors in a meeting held today.
Tourism is expected to become a major growth driver of the Philippine economy as the Philippine Government steps up its tourism campaign with the “It’s more Fun in the Philippines” slogan. The Philippine Amusement and Gaming Corporation (PAGCOR), through its Entertainment City project, has also awarded four casinos licenses to build at least 800 hotel rooms each (total of 3,200) with a minimum investment of at least $1 billion each. This, along with other improvements in airport infrastructure, is expected to substantially increase the number of tourists coming into the Philippines. E-Games hopes to undertake projects in this area as part of its mandate to invests in growth sectors of the economy.
In relation to the foregoing, E-Games’ sister company IP Converge Data Center Inc. (PSE: CLOUD) also has a joint venture in CEZA operating data centers and communication links. E-Games is expected to substantially improve its financials from this acquisition.