Lance Gokongwei to acquire up to 15% stake in PhilWeb
Lance Gokongwei, president and CEO of JG Summit Holdings and chair of Robinsons Land, is set to acquire up to a 15-percent stake in listed gaming technology firm PhilWeb Corp. through a P2.03-billion share subscription deal.
In a disclosure on Wednesday, PhilWeb said it entered into a subscription agreement with Gokongwei, acting in his personal capacity, for the subscription of 159.53 million common shares and 93.84 million redeemable preferred shares at a price of P8 apiece.
Upon completion of the subscription and the capital hike, Gokongwei will own 159.53 million common shares. These represent about 10 percent of PhilWeb’s issued and outstanding common shares.
His stake could rise further to about 15 percent if all 93.84 million redeemable preferred shares are converted into common shares, according to PhilWeb.
The transaction amounts to a total subscription value of P2.026 billion and forms part of the company’s efforts to strengthen its capital base and support future corporate initiatives.
Increase in capital
“The transaction is intended to support the company’s capital raising initiatives and related corporate initiatives,” the company said.
PhilWeb said the shares will be issued from additional common and redeemable preferred shares that will be created under a proposed increase in its authorized capital stock to P3.6 billion from P2.6 billion.
The planned capital increase remains subject to approval by shareholders, the Securities and Exchange Commission and other regulatory requirements.
The listing of the subscribed common shares will likewise require approval from the Philippine Stock Exchange.
The investment marks a significant vote of confidence in PhilWeb and would make Gokongwei one of the company’s largest shareholders once the transaction is completed and all regulatory approvals are secured.
