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DIVERSIFIED Financial Network Inc. (DFNN) announced recently that
its Singaporean unit signed an agreement with a slot machine arcade
operator to gain a foothold in the Cambodian gaming industry as part
of its expansion throughout the region.
In a disclosure to the Philippine Stock
Exchange, the firm said its Singapore-based subsidiary, Pacific
Gaming Investments Pte. Ltd., entered into a memorandum of
understanding with the Cambodian operator. This accord paves the way
for legal and financial due diligence before proposing an
acquisition structure.
DFNN said one of the main “hurdles” in the
financial due diligence is “for the arcade to have produced $1
million in profit” from July to December last year. The due
diligence would be completed in three weeks, the company said.
In December, Pacific Gaming bought a 33 and
1/3-percent stake in Interactive Entertainment Technology Solutions,
a Southeast-Asian gaming firm that is into the event, sports and
financial spread betting business, for $2.5 million. The purchase
would allow Pacific Gaming to have management control and the option
to acquire the remaining stake after the Singaporean unit lists
“on a suitable exchange” and provides the gaming software
expertise and marketing tie-ups in the region.
Early last year, DFNN announced that another
subsidiary, Intelligent Wave Inc., would raise additional capital to
boost its manpower and infrastructure by selling shares to the
public for the first time. It aims to generate $5 to $6 million from
its maiden share offering, the terms and schedule of which would
still have to be threshed out with its underwriter BDO Capital and
Investment Corp. Proceeds of the share sale would go to space
expansion and increase of the company’s Philippine personnel from
100 to 500. The additional workforce would focus on the development
of software for business applications with some Japanese companies.
DFNN also plans to conduct a follow-on offering
of shares worth $5 million to finance the expansion of Pacific
Gaming.
-- Likha C. Cuevas-Miel
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