PACIFIC ONLINE Systems Corp. is acquiring a 37.5% stake in electronic gaming platform software and service provider HHR Philippines, Inc. (HHRPI) for P150 million to grow its online gaming presence.
The two groups signed an investment agreement on Jan. 29, Pacific Online said in a regulatory filing on Thursday.
Under the deal, Pacific Online subscribed to 81,000 HHRPI common shares, equivalent to a 37.5% stake, worth P150 million, which will be paid in three tranches.
“Through this investment in HHRPI, the corporation will be expanding its presence in the online gaming business through a company licensed by the Philippine Amusement and Gaming Corp. (PAGCOR),” Pacific Online said.
“The new capital to be infused by the corporation into HHRPI, on the other hand, will be utilized by the latter to fund its expansion activities,” it added.
HHRPI is a PAGCOR-licensed software and professional service provider of electronic gaming platforms for land-based and online gaming operators.
It is also a holder of a PAGCOR gaming license for online gaming under the brand “Buenas.”
Pacific Online has business interests in the provision and management of online lottery systems, terminals, and software for the Philippine lottery gaming industry.
The company is a gaming unit of Belle Corp., which is engaged in resort development and gaming.
For the first nine months, Pacific Online saw a 98% decline in net income to P3.76 million from P228.24 million a year ago. Revenue declined by 17% to P388.4 million.
Pacific Online shares were last traded on Jan. 28 at P4 apiece. — Revin Mikhael D. Ochave
