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Premiere Entertainment Productions Inc. will buy an
online gaming firm through a share swap agreement that will merge
the firm’s entertainment expertise with Internet casino gaming and
related software development businesses, the company announced
Monday.
In a statement, the listed movie
production company said it would acquire Digiwave Solutions Inc. (DWI),
an online gaming and software development firm in the Philippines
through a share swap agreement signed on February 22.
Under the agreement, PEP will
exchange 500,000 shares of stock or 100 percent of DWI at a par
value of P100.00 per share worth P50 million for 1 billion PEP
shares. The agreement also calls for a cash infusion of P2 million
by DWI shareholders, which will be documented in future subscription
agreements.
The transaction becomes effective
upon its ratification during PEP’s general shareholders’ meeting
in March. After the asset swap, the two companies will rename the
merged firms as Premier Entertainment Philippines Inc.
DWI, founded on August 9, 2006,
is engaged in software development for entertainment and leisure
gaming using state-of-the-art South Korean technology and highly
skilled Filipino workforce. The firm is the second supplier of games
such as Baduki and 7-Card Stud to the Philippine Amusement and
Gaming Corp. (Pagcor) nationwide via PhilWeb.
The IT firm is also negotiating
with leading software providers and developers to improve its
product line-up and to export gaming software in a bid to capture at
least 5 percent of the $4-billion software gaming market by 2010.
PEP, on the other hand, is
chaired by movie producer Cirio Santiago, and produces full-length
motion pictures and program contents for free television, cable
broadcast and video distribution. It has been involved in the
conduct of sponsored film exhibition through its Roving Cinema while
PEP subsidiary, Premium Events Palace, Inc., has been involved in
the operation of Bingo parlors.
-- Likha C. Cuevas-Miel
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