PhilWeb Corp. has sold its interest in Acentic GmbH for a total of P140 million to cover its overhead expenses while waiting for Philippine Amusement and Gaming Corp. (Pagcor)to renew its license.
It sold its investment in Acentic GmbH to Niantic Holding GmbH for $750,000 or about P37.29 million.
On top of this, the company also received €1.97 million or P102.8 million from Acentic in full payment of loan receivables.
Cash proceeds are estimated at P140 million, which “will be utilized by the company to cover its overhead while it awaits the reissuance of its license from Pagcor,” PhilWeb noted in a disclosure to the Philippine Stock Exchange on Tuesday.
Since August last year, PhilWeb has stopped operating after the regulator did not renew its licensing deal in the wake of President Rodrigo Duterte’s earlier pronouncements to abolish online gambling.
PhilWeb is still in the process of renewing its license with Pagcor to provide software for Pagcor’s 286 e-Games outlets.
In a December 12 letter, Pagcor told PhilWeb that a renewal of its license was “no longer legally feasible” as it would source a technology provider for the e-Games network via public bidding, in line with Republic Act 9184 or the Government Procurement Reform Act of 2003.
Also earlier last year, PhilWeb Chairman Gregorio Ma. Araneta III said it hopes to renew its Pagcor license, and hopes to fully re-operate and put the 5,000 employees and operators back to work. Since
Through the e-Games outlets, PhilWeb employed 700 personnel and 5,000 others who are e-Games operators. As a service provider for the e-Games outlets in the last 14 years, PhilWeb has remitted over P14 billion to the government, which the regulator used for its pro-poor programs.
In 2015, PhilWeb remitted more than P2.1 billion to and paid over P280 million in corporate income tax, value-added tax and other taxes.