PhilWeb trading suspended over P4.23-B deal

MANILA, Philippines — The Philippine Stock Exchange (PSE) on Tuesday suspended trading in PhilWeb Corp. shares after it classified the company’s P4.23-billion investment in JKS Tech Solutions Inc. as a substantial acquisition.

The suspension took effect at 9 a.m. and will remain in place until the gaming technology firm submits the comprehensive disclosure required by the bourse.

READ: PhilWeb expands capital stock to P3.6B

PhilWeb and wholly owned subsidiary PhilWeb Capital Corp. agreed to subscribe to a combined 10.73 million Common B Shares of JKS at P394 each.

PhilWeb’s portion is worth P1.34 billion, while its unit will invest P2.88 billion.

The shares will come from a proposed increase in JKS’ authorized capital stock, subject to stockholder and Securities and Exchange Commission approvals and other regulatory requirements.

READ: Lance Gokongwei takes PhilWeb helm

In a related deal, PhilWeb agreed to sell 81.38 million treasury shares to JKS for P1.34 billion, or P16.50 per share. The shares represent about 4.85 percent of PhilWeb’s issued and outstanding shares.

JKS is a Philippine business-to-business technology, platform, and digital infrastructure company serving licensed mid-market operators in the digital entertainment sector. /pai