Philippines — PhilWeb Corp. is investing about P4.23 billion in digital infrastructure provider JKS Tech Solutions Inc., using its own stocks as partial payment, deepening its exposure to the digital <a href="https://comicvibe.com/monumental-sports-entertainment-reaches-multi/” title=”Monumental Sports & Entertainment reaches multi”>entertainment technology sector
On Tuesday, PhilWeb said it would sell 81.38 million treasury common shares to JKS for P1.34 billion, with the proceeds to be used to partially fund its subscription for common shares in JKS.
READ: PhilWeb expands capital stock to P3.6B
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The treasury shares will be sold at P16.50 each. JKS will acquire 20.35 million shares for P335.7 million at the first closing and the remaining 61.04 million shares for P1.01 billion at the second closing.
Upon completion, JKS will hold about 4.85 percent of PhilWeb’s 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, based on Philweb’s disclosure.
PhilWeb, meanwhile, is investing P1.34 billion directly in JKS by subscribing to 3.41 million common shares at P394 each.
Its wholly owned subsidiary, PhilWeb Capital Corp., is subscribing to 7.32 million common shares for P2.88 billion.
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PhilWeb did not disclose what percentage ownership in JKS the group would ultimately hold following the P4.23-billion combined investment.
However, the Philippine Stock Exchange classified PhilWeb’s investment in JKS as a substantial acquisition and suspended trading in PhilWeb shares on Sept. 8.
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READ: PhilWeb trading suspended over P4.23-B deal
The suspension will remain in place pending the company’s submission of the required comprehensive disclosure.
The common shares to be sold by JKS will come from its proposed increase in authorized capital stock, which remains subject to stockholder and Securities and Exchange Commission approvals and other regulatory requirements.
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The disclosure also clarified that PhilWeb will be left with just 146 treasury common shares after the transaction, from 81.38 million previously. INQ
