MANILA, Philippines – PhilWeb Corporation (PSE:WEB) reports selling its investment in Acentic GmbH to Niantic Holding GmbH.
In a disclosure to the Philippine Stock Exchange (PSE) filed on behalf by Raymund Aquino, PhilWeb Vice President Legal/Assistant Corporate Secretary, the gaming technology provider informed the local bourse that it sold its investment in Acentic for $750,000. In addition, full settlement of its loan receivables from Acentic was collected totaling €1,973,250.
In total, PhilWeb was able to raise P140 million in cash proceeds. The fund will be used by the firm for its operating costs while it awaits the re-issuance of its license from Philippine Amusement and Gaming Corporation (PAGCOR).
Before December 2016 ended, PhilWeb was reported to be going through competitive bidding prior to resuming the e-Games network operations of PAGCOR, which may soon have legal power covering the country’s entire online gaming portals.
Through a letter provided by PAGCOR, Andrea D. Domingo, the state corporation’s Chairman and Chief Executive Officer, stated that the service provider for casino gaming would be selected in compliance with the Government Procurement Reform or Republic Act (RA) No. 9184.
PAGCOR, which is geared to regulate the gaming sector of the Philippines, will provide the contract through public bidding. Domingo explained to PhilWeb that renewing the intellectual property license and management agreement (IPLMA) of the latter could not be done without going through RA 9184. She even emphasized that the matter has been discussed during their meeting last November 4, 2016.
Presently, the state corporation is preparing the reference terms, which would be followed by evaluation of the bids and awards committee.
PhilWeb finances were weighed on by the e-Games operation’s suspension. In the first three quarters of 2016 ending September, the net income of the gaming technology firm dropped from P615.7 million to P229.1 million, a 63 percent decline. Its revenues also declined from P1.24 billion to P1.03 billion, a decrease of 16 percent.
The third quarter of the company in 2016 also recorded a net loss of P5.4 million, particularly when its PAGCOR contract was not renewed. This was lower than its net income recorded of P206.1 million for the same period in 2015.
On October 12, 2016, the company sent an application of IPLMA renewal, seven days following Gregorio Araneta, Inc. agreed that it would take over PhilWeb. Araneta was assigned as the board lead of the firm even before the sales and purchase agreement finalization. Roberto V. Ongpin of PhilWeb sold 771,651,896 shares in PhilWeb, which compose 53.76 percent stake in the company.
Stock Signals Philippines is your go-to website for stock analysis, tips and strategies in trading and investing in the Philippine stock market. StockSignals.ph is a property of Equilyst Analytics, Inc.