Pacific Online set to unload treasury shares

Screengrab from https://loto.com.ph/global/index.php

MANILA, Philippines–Lotto equipment operator Pacific Online Systems Corp. is unloading some of its treasury shares to raise at least P250 million in fresh funds for the upgrading and expansion this year of its equipment and terminals.

In a disclosure to the Philippine Stock Exchange on Wednesday, Pacific Online said the company had obtained the authority to sell all or part of its treasury shares at prevailing market prices.

“Pursuant to this authority, the corporation has offered for sale part of its shares held in treasury through the facilities of the exchange,” the disclosure said.

Pacific Online has about 277.598 million in outstanding shares versus about 298.33 million in listed shares.

This leaves about 20.73 million in potential treasury shares valued at P316.78 million based on Wednesday’s closing price of P15.28 per share.

Asked about the rationale for the sale of treasury shares, Pacific Online chair and president Willy Ocier said in a text message that the proceeds would be used to fund the upgrade and expansion of the company’s lotto equipment and terminals.

Ocier added that P350 million had been budgeted this year for the project.

Apart from raising fresh funds for expansion, the sale of treasury shares will effectively boost Pacific Online’s trading liquidity.

Pacific Online is 34.5 percent owned by Belle Corp.

This stake is among those to be spun off by Belle into Sinophil Corp., which will be transformed into the group’s gaming investment holding arm.

Belle’s interest in the gaming operations of City of Dreams Manila as held by Premium Leisure and Amusement Inc. (PLAI) will also be infused into Sinophil.

Pacific Online is engaged in the development, design and management of online computer systems, terminals and software for the Philippine gaming industry.

It brokers technology from global suppliers of integrated gaming systems and leases to Philippine Charity Sweepstakes Office (PCSO) the equipment needed for its online lottery operations in the Visayas and Mindanao.