LRWC buys e-games operator for P620M
Trading on shares of Leisure and Resorts World Corp. (LRWC) was suspended Monday as the gaming firm finalized a deal to acquire 100 percent of Total Gamezone Extreme Inc. (TGXI), which owns and operates a network of e-games outlets.
In a disclosure Monday, LWRC said it had signed an asset share and purchase agreement with Premiere Horizon Alliance Corp. (PHAC), Digiwave Solutions Inc. and TGXI for the corporation’s acquisition of 100 percent of the outstanding capital stock of TGXI for P620 million.
The PSE said that after a careful review of the disclosure, the transaction was deemed covered by the disclosure rule for substantial acquisitions and reverse takeovers.
As such, the PSE ordered a trading suspension on LRWC shares starting at 1:30 p.m. on Monday pending the corporation’s compliance with the disclosure requirements.
Based on the agreement, 2.18 million shares of TGXI were sold to LWRC at a price per share of P284.40. The price was based on the operating value of 45 e-game branches operated by TGXI with authority from the state-controlled Philippine Amusement and Gaming Corp.
Apart from taking over all TGXI-owned and operated Pagcor e-games stations, the deal gives LWRC access to all other PEGS-related peripherals and equipment.
In the case of PHAC, which is also a publicly listed company, the company separately told the local bourse that the purpose of this transaction was the “liquidation of investment generating funds for new projects.”
PHAC, formerly Premiere Entertainment Productions Inc., is engaged in the production of motion pictures and likewise ventured into the gaming industry, as part of its overall entertainment offer.
The acquisition of the e-games network is in line with LWRC’s gaming offerings.
Through subsidiary AB Leisure Exponent Inc. (ABLE) or Bingo Bonanza Corp., the company operates 69 bingo parlors nationwide, six of which are owned by ABLE.
LWRC also has a 69.68-percent interest in First Cagayan Leisure and Resort Corp., which has a license agreement with the Cagayan Economic Zone Authority to develop, operate and conduct Internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Free Port. Doris C. Dumlao
