PhilWeb invests US$67.4m in JKS Tech digital gaming deal
The Philippine Stock Exchange suspended PhilWeb trading after classifying the JKS Tech transaction as a substantial acquisition requiring additional disclosure.
The Philippines.- PhilWeb Corp has announced a combined ₱4.23bn (US$67.4m) investment in JKS Tech Solutions Inc, a business-to-business gaming technology provider. It will subscribe to 3.41m Class B common shares in JKS Tech at ₱394 each, representing an investment of about ₱1.34bn (US$21.4m). Its wholly owned subsidiary PhilWeb Capital Corp will take up another 7.32m shares for ₱2.88bn (US$45.9m).
The shares will be issued through a proposed increase in JKS Tech’s authorised capital stock. The transaction remains subject to approval by JKS shareholders, the Philippine Securities and Exchange Commission (SEC) and other applicable regulatory requirements.
Separately, JKS Tech will acquire 81.38m PhilWeb treasury shares at ₱16.50 each for about ₱1.34bn (US$21.4m). The shares represent approximately 4.85 per cent of PhilWeb’s issued and outstanding stock. Payment will be made in stages.
The scale of the transaction prompted the Philippine Stock Exchange (PSE) to suspend trading in PhilWeb shares from 9am. The exchange classified the investment as a substantial acquisition and requires PhilWeb to submit comprehensive disclosure documents before trading can resume.
PhilWeb said the investment will support its expansion as a digital gaming technology and solutions provider, while strengthening its technology capabilities and recurring revenue opportunities.
