PHILWEB Corp. is investing a combined P4.23 billion in JKS Tech Solutions Inc., a Philippine technology and digital infrastructure company serving licensed operators in the digital entertainment sector.
The company will subscribe to P1.34 billion worth of JKS shares, while its wholly owned subsidiary, PhilWeb Capital Corp., will invest another P2.88 billion under separate subscription agreements, based on disclosures on Tuesday.
The investment coincides with PhilWeb’s sale of 81.38 million treasury shares to JKS at P16.50 each, for an aggregate consideration of P1.34 billion.
Under the transaction, PhilWeb will sell 20.35 million treasury shares for P335.7 million at the first closing, followed by 61.04 million shares worth P1.01 billion. The shares represent about 4.85 percent of PhilWeb’s issued and outstanding shares.
PhilWeb’s subscription in JKS covers 3.41 million Common B shares priced at P394 each, for a total of P1.34 billion.
PhilWeb Capital, meanwhile, will subscribe to 7.32 million Common B shares at the same P394 subscription price, amounting to P2.88 billion.
The disclosures did not state the resulting ownership percentages of PhilWeb and PhilWeb Capital in JKS.
Under an amended disclosure, PhilWeb Capital will pay P180.21 million at the first closing, with the remaining P2.7 billion payable thereafter.
PhilWeb will pay P335.7 million of its subscription price initially, with the balance of P1.01 billion to be settled subsequently.
The JKS shares will be issued from a proposed increase in the company’s authorized capital stock, subject to approval by its stockholders, the Securities and Exchange Commission and other applicable regulatory requirements.
The transactions are also subject to the terms and conditions of the respective agreements.
JKS describes itself as a Philippine business-to-business technology, platform and digital infrastructure company serving licensed mid-market operators in the digital entertainment sector.
The company did not disclose additional details on the strategic rationale for the investment, including the expected financial contribution or target returns from the JKS investment.
PhilWeb shares last traded on Monday at P15.00 each.
