P1.52B deal turns Sinophil into key gaming firm
MANILA, Philippines–Sinophil Corp. has completed the purchase of a 34.5-percent stake in lotto equipment provider Pacific Online Systems Corp. from parent conglomerate Belle Corp.
The P1.52-billion transaction formed part of Sinophil’s transformation into a gaming investment holding firm, the company said Wednesday in its disclosure to the Philippine Stock Exchange.
Also, Sinophil completed its sale of non-gaming assets to Belle, worth P806.88 million, which included parcels of land and club shares at the Tagaytay Midlands Golf Club Inc., Belle reported in a separate regulatory filing.
The transactions are expected to turn Sinophil “from a long-time practically dormant holding company into a potentially strong player” in the vibrant and profitable Philippine gaming industry, the company said.
“The transformation of Sinophil benefits not only the principal shareholders, but the minority/independent shareholders as well,” it added.
On the Pacific Online (Loto) transaction, Sinophil acquired from Belle 101.67 million shares, equivalent to 34.5 percent of the total stake, at P15 apiece. The total amount of P1.52 billion will be settled in cash.
The transfer of Loto shares from Belle to Sinophil will be executed through a special block sale using the facilities of the exchange.
Loto 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 it needs for its online lottery operations in the Visayas and Mindanao regions.
Loto also provides PSCO the necessary technical support.
Meanwhile, the deeds of absolute sale involving Sinophil’s assets had been executed. Under the terms, Belle acquired membership shares in Tagaytay Midlands Golf Club, a lot located within the Aseana Business Park at the Manila Bay reclamation area, several parcels of land in The Parks at Saratoga Hills within the Tagaytay Midlands complex and an undeveloped piece of land in Tanauan, Batangas.
Belle is consolidating all gaming interests—including the stake in the upcoming gaming hub City of Dreams Manila and stake in Loto—into Sinophil, which will be renamed Premium Leisure Corp. to reflect the change in business.
Belle also plans to pare down its stake in Sinophil within the year to boost the latter’s stock trading liquidity and make it more attractive.
After the consolidation of gaming assets in Sinophil, which will own half of the gaming operations in the upcoming City of Dreams Manila, Belle will own close to 90 percent of Sinophil, but it intends to place out some shares and only keep 67-70 percent stake in the company.
