Technology firm DFNN Inc. is scaling up its interest in the lucrative gaming business by acquiring 25-percent direct stake in Inter-Active Entertainment Solutions Technologies Inc. (IEST), provider of betting and gaming solutions to the state-owned Philippine Amusement and Gaming Corp. (Pagcor).
The proposed investment in IEST, an investee company of DFNN’s subsidiary Pacific Gaming Investments, will be done through a debt-to-equity conversion, primary infusion and stock swap, which is still subject to a due diligence audit, based on a DFNN regulatory filing.
The deal gives IEST a post-acquisition enterprise value of P650 million, subject to an independent third-party valuation of its business.
The selling shareholders of IEST agreed on a price of P15 a share for the portion of the stock swap. This represented a discount to DFNN’s last traded price of P6.50 per share at the local stock market. The technology firm has a market capitalization of about P767.8 million based on the last closing price.
The boards of DFNN and IEST have authorized their respective executive officers to sign the agreements, which are seen to complement and expand the group’s gaming business. Both companies agreed to a 90-day period.
Currently, IEST provides a betting platform for a variety of sporting and nonsporting events through point-of-sale terminals and interactively through authorized Pagcor gaming venues. As a complement to the betting platform for sports and nonsporting events, IEST also provides “InstaWin” type games. This system allows Pagcor to operate in a similar manner in other globally recognized gaming jurisdictions.
“Instawin,” a new gaming concept/product in the Philippine gaming market, offers easy to play games with low stakes but with a very high entertainment factor. It is distributed by IEST in the Philippines under the Pagcor license.
Read more: https://business.inquirer.net/30199/tech-firm-dfnn-ups-stake-in-lucrative-gaming-trade#ixzz5QquB16Mo