TYCOON Lance Gokongwei is buying up to P2.03 billion worth of shares in gaming technology and digital infrastructure provider PhilWeb Corp., marking a significant potential stake buildup in the online gaming services provider.
In a disclosure on Wednesday, PhilWeb said Gokongwei had subscribed in a personal capacity to 159,530,742 common shares and 93,841,613 redeemable preferred shares at P8.00 per share, amounting to a total price of P2,026,978,840.
The price is a substantial discount from the firm’s share price, which rose by P1.10, or 8.22 percent to P14.48 amid a 2.2-percent plunge for the benchmark Philippine Stock Exchange index.
The transaction forms part of a planned increase in the company’s authorized capital stock, which is proposed to be raised from P2.6 billion to P3.6 billion, subject to approval of stockholders, the Securities and Exchange Commission and other regulatory requirements.
PhilWeb said the capital infusion was intended to support fundraising initiatives and related corporate expansion plans.
Upon completion of the subscription and capital stock increase, Gokongwei will hold 159,530,742 common shares, equivalent to about 10 percent of PhilWeb’s issued and outstanding common shares.
If all redeemable preferred shares are converted into common shares, his ownership could increase to around 15 percent.
The listing of the new common shares still requires PSE approval, and PhilWeb also did not provide a timetable for the completion of the capital hike.