Premiere Entertainment nears purchase of online gaming firm
Listed firm Premiere Entertainment Productions Inc. is soon to acquire Digiwave Solutions, Inc., an online gaming and software development company in the Philippines . Through a share swap agreement signed Friday, the deal calls for the issuance of about 1.003 billion PEP shares in exchange for 100 percent ownership of Digiwave amounting toP50 million, PEP said in a statement sent to the media. The transaction will have to be ratified by PEP stockholders in a general stockholdersâ meeting in March. The selling shareholders of Digiwave will also infuse up to P200-million cash into PEP. âThe share swap is anchored on DWIâs (Digiwaveâs) projected net income as for the year ending December 31, 2008 valued at P125.499 million given a P/E multiple of eight times," the company said. Following the share swap and the cash infusion Digiwave will end up with 69.8 percent of PEP. PEP will also increase its authorized capital stock from P1 billion to P2.5 billion and issued shares from 520 million to about 1.72 billion shares with a par value of P1 each. Both PEP and DWI agreed to rename their new company Premiere Entertainment Philippines Inc. Digiwave is a Philippine-based entertainment and IT company founded in August 9, 2006. Its principal business is in software development and provision, particularly for leisure gaming purposes. The company has already developed two games, Baduki and 7-Card Stud poker, which are presently deployed to all PEGS branches of Philippine Amusement and Gaming Corp. in Metro Manila. - Cheryl Arcibal, GMANews.TV