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PhilWeb Corp and wholly owned PhilWeb Capital Corp will invest a combined PHP4.23 billion in JKS Tech Solutions Inc, deepening their exposure to Philippine online gaming technology and infrastructure.
The Philippine Stock Exchange suspended trading in PhilWeb shares from September 8 while it waits for additional disclosure on the transaction under rules covering substantial acquisitions.
Good to Know
- PhilWeb and PhilWeb Capital will subscribe to about 10.73 million JKS Tech shares at PHP394 each.
- JKS Tech will separately buy 81.38 million PhilWeb treasury shares for about PHP1.34 billion.
- The PhilWeb trading suspension remains in place until the company provides the required comprehensive disclosure.
PhilWeb Builds Larger Gaming Technology Position
PhilWeb itself will invest PHP1.34 billion for about 3.41 million Common B shares in JKS Tech.
PhilWeb Capital will add another PHP2.88 billion through a subscription for about 7.32 million shares, taking the combined investment to roughly PHP4.23 billion.
JKS Tech operates as a Philippine B2B technology, platform and digital infrastructure provider for licensed gaming businesses. PAGCOR also lists the company as an accredited gaming system administrator for the Epic Game brand.
Its approved offering covers products including electronic casino games, bingo, sports betting, specialty games and numeric games.
The new JKS Tech shares will come from a proposed increase in authorised capital. The subscriptions still require JKS Tech shareholder approval, Securities and Exchange Commission clearance and other applicable regulatory approvals.
JKS Tech Takes 4.85 Percent PhilWeb Stake
The investment also creates a direct equity link between the two companies.
JKS Tech agreed to acquire approximately 81.38 million PhilWeb treasury shares at PHP16.50 each, giving the company a stake of about 4.85% in PhilWeb.
The PHP1.34 billion purchase price closely matches the direct PHP1.34 billion subscription PhilWeb will make in JKS Tech. PhilWeb said proceeds from the treasury share sale will help fund the JKS investment and provide additional capital for strategic investments and other corporate requirements.
PhilWeb will initially pay PHP335.70 million toward its JKS subscription, with about PHP1.01 billion due later. PhilWeb Capital will pay PHP180.21 million at first closing and around PHP2.70 billion afterward.
PSE Suspends PhilWeb Trading
The Philippine Stock Exchange determined that the JKS Tech transaction falls under Section 5, Article VII of its rules covering substantial acquisitions and reverse takeovers.
Trading in PhilWeb shares was therefore suspended from 9 a.m. on September 8. The PSE said the suspension will remain until PhilWeb files the required comprehensive disclosure. The notice does not classify the transaction itself as a reverse takeover.
The transaction follows a separate PHP2.03 billion investment in PhilWeb by Lance Gokongwei.
Gokongwei joined the PhilWeb board in July and became chairman effective August 27. PhilWeb has linked the new leadership structure with plans to grow its B2B gaming technology and AI infrastructure operations.
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