Tycoon Lance Gokongwei is pouring P2 billion into PhilWeb Corp. after a management-led turnaround transformed the gaming technology firm from a loss maker into one of the Philippine Stock Exchange’s best-performing stocks.
The investment, first reported by InsiderPH, marks a strong vote of confidence in a company that has rapidly reinvented itself under president Brian Ng by shifting its focus toward regulated online gaming and digital platform services.
Gokongwei agreed to subscribe to 159.5 million common shares and 93.8 million redeemable preferred shares at P8 apiece for a total investment of about P2 billion.
This is 40 percent below its last traded price of P13.38 per share.
The transaction could give him up to a 15 percent stake in PhilWeb and will be funded through a proposed increase in the company’s authorized capital stock to P3.6 billion from P2.6 billion, subject to shareholder and regulatory approvals.
Turnaround story
PhilWeb, a pioneer in Philippine online gaming, had struggled with losses before a new management team engineered a return to profitability.
It returned to profitability in the first quarter, posting net income of P13.9 million from a P25.5 million loss a year earlier as revenue climbed 30 percent to P233.1 million.
The turnaround has fueled a sharp rerating in the stock, with shares gaining about 500 percent percent over the past 12 months.
Expansion push
The company has spent the past year securing partnerships with operators including Hann, Okada and NUSTAR as it expands its presence across the regulated online gaming ecosystem.
PhilWeb said proceeds will be used to support working capital requirements and accelerate the expansion of its gaming and technology platforms.
The shares will be subject to an 18-month lock-up period, while the company said the investment will not result in a change of control and that Gokongwei does not intend to seek control of the firm.
—Edited by Miguel R. Camus
