Ongpin, through Azurestar Corp. and Aquadisk Corp., purchased a total of 14.37 billion PhilWeb shares at 1.1 centavos per share, the average of the closing prices for the past 30 days.
The transaction was closed at the Philippine Stock Exchange yesterday.
PhilWeb said in a disclosure to the PSE that the Cabarrus family was the original controlling shareholders of South Seas Natural Resources Inc., the predecessor company of PhilWeb.
South Seas was primarily a mining company until it changed its corporate name to PhilWeb to reflect its shift into information technology.
PhilWeb is currently a leading integrated Internet company in the Philippines. The company provides access, business solutions, e-commerce platforms, distribution services for Internet appliances and software and invests in promising Internet start-up ventures.
PhilWeb recently obtained the approval of the Philippine Amusement and Gaming Corp. (Pagcor) to operate the latter’s Internet casinos and sports betting centers.
It will serve as technical consultant and service provider in developing Pagcor’s own online sports betting website. The site would allow local and foreign players to bet on basketball games played in the US and the Philippines.
PhilWeb, an affiliate of Canada-based Advanced Games Corp., has been preparing for its shift to Internet-based gaming activities since 2002. Advanced Games is an internationally recognized pioneer in the development and licensing of gaming-related software and applications.
The shift was made to take advantage of the robust growth of the Internet-based gaming industry, which is projected to grow to $10 billion in the next five years.
Two years ago, PhilWeb was appointed the exclusive partner of Next Generation Inc., an Antigua-based gaming company specializing in sports-based Internet, including NBA basketball games, European football, and other international sports betting.
To allow it to focus on Internet sports betting and gaming, which are now its core businesses, Philweb has decided to integrate its Internet service provider (ISP) products and services with those offered by Singapore-registered Edsamail Holdings Pte. Ltd.
PhilWeb and Edsamail also agreed to form a strategic partnership under which Edsamail will handle all consumer product sales and marketing. PhilWeb, meanwhile, will continue to collaborate with Edsamail in the marketing of all connectivity requirements of PhilWeb’s clients and partners regarding Internet sports betting and gaming.