"We expect to sign the agreement papers this week, if not early next week. There were no obstacles to the agreement, just minor details the lawyers had to work on," said ePLDT president Ray Espinosa.
Espinosa said the 20-percent stake entitles ePLDT to three board seats in Philweb. He declined to say how much ePLDT would pay for its investment but pointed out that the terms and conditions of the investment to be made by the Internet and technology arm of telecommunications giant Philippine Long Distance Telephone Co. have already been finalized.
"The new directors would include myself. We still have to determine who will be the other two," Espinosa said.
Under the proposed deal, ePLDT will acquire approximately 24 billion Philweb shares. Its investment will be in the form of a primary share issue of Philweb shares.
Philweb provides access, business solutions, e-commerce platforms, distribution services for Internet appliances and software and invests in promising Internet start-up ventures
"We expect Philweb to be profitable this year, and we expect to gain from that also. They will help PLDT and Smart in the content that they can provide. It’s a content play. Smart now wants to get into mobile-based online games so this agreement will be key," Espinosa said.
"On their (Philweb) part, they have their own plans and programs so I don’t know what this agreement means to them. But they might use the money to fund their operations," he added.
Philweb earlier said there is great value and synergy in a strategic alliance between the company and ePLDT. Philweb, which is in the Internet gaming business, is actively expanding, its Internet and mobile gaming projects in partnership with state gaming firm Philippine Amusement and Gaming Corp. (Pagcor).
ePLDT, on the other hand, is a sister company of Smart, the largest mobile phone company in the Philippines.
Philweb started as an Internet service provider (ISP) five years ago. In 2003, it exited from the ISP business and focused on Internet gaming.
To allow it to focus on Internet sports betting and internet gaming, which are now its core businesses, Philweb has agreed to integrate its Internet service provider (ISP) products and services with those offered by Singapore-registered Edsamail Holdings Pte. Ltd.
PhilWeb is Pagcor’s partner for the latter’s Internet casino products. Pagcor has decided to offer casino games outside the land-based casinos via Internet casino stations. Compared with the land-based counterpart, Internet casino stations require less investment because of their low overhead as well as operating and marketing costs.