PHILWEB Corp. will sell 81.38 million of its treasury shares to JKS Tech Solutions Inc. for about P1.34 billion as part of the funding structure for its P4.23-billion strategic investment in the digital infrastructure company.
The listed technology company said Wednesday that the transaction will not require new external debt financing, with proceeds from the treasury-share sale to be redeployed toward its investment in JKS.
“JKS combines an established earnings base with a scalable, asset-light B2B operating model and a highly complementary market position,” PhilWeb Chairman Lance Gokongwei said.
Meanwhile, PhilWeb President Brian Ng said, “JKS brings both meaningful earnings and a highly complementary operating platform to PhilWeb.”
“The opportunity is not simply to combine market reach. By progressively integrating our technology, systems, data, and shared operating capabilities, we believe we can build a more efficient and scalable infrastructure platform with stronger long-term economics,” he added.
PhilWeb said the transaction reflects a capital-reallocation strategy that puts previously non-yielding capital to productive use, while allowing the company to invest in an established and profitable business without increasing its leverage.
PhilWeb agreed to sell 81,380,792 common shares to JKS at P16.50 per share, generating about P1.34 billion in proceeds.
The company said the move would put previously non-yielding capital to productive use, noting that its historically reported negative equity had been significantly influenced by the accounting treatment of treasury shares as a deduction from equity.
“PhilWeb has historically reported negative equity, significantly influenced by the accounting treatment of treasury shares as a deduction from equity. Monetizing a portion of these treasury shares puts non-yielding capital back to productive use and strengthens the company’s equity and capital structure,” the company said.
Gokongwei said, “The transaction reflects disciplined capital allocation — putting existing capital resources to more productive use while strengthening the broader PhilWeb platform and creating sustainable long-term value for shareholders.”
Based on unaudited management accounts, JKS currently generates about $35 million in annual net income, with PhilWeb expecting its strategic interest in the company to contribute meaningfully to future earnings, subject to JKS’ performance and accounting treatment.
Under the broader transaction, PhilWeb and its subsidiary PhilWeb Capital Corp. will subscribe to a combined 10.73 million Common B shares of JKS at P394 per share, amounting to about P4.23 billion.
Of this amount, PhilWeb will subscribe to about P1.34 billion worth of JKS shares, while PhilWeb Capital will subscribe to about P2.88 billion.
In return, JKS will acquire the 81.38 million PhilWeb treasury shares, equivalent to about 4.85 percent of PhilWeb’s issued and outstanding shares.
The Philippine Stock Exchange stopped trading in PhilWeb starting Sept. 8, 2026, after the company announced that it executed two subscription agreements with JKS Tech Solutions Inc. last Sept. 7.
