Premiere Entertainment sells GEM shares for P32M
Listed film maker Premiere Entertainment Productions Inc. (PEP) has sold its shares in GEM Communications Holdings Corp. for P32.4 million.
In a disclosure to the Philippine Stock Exchange, PEP said it has entered into a deed of sale with AOB Management for the sale of 54 million shares in GEM Communications for P0.60 per share, payable until Dec. 31, 2008.
PEP is increasing its authorized capital from P1 billion to P2.5 billion to cover the issuance of shares to shareholders of leading online gaming and software firm Digiwave Solutions Inc. as part of an agreement forged by the two parties late last month.
Under the agreement, PEP will issue 1.003 billion shares to Digiwave shareholders in exchange for 100 percent ownership of the gaming company. Digiwave shareholders – S Capital Corp., Jun Ku Lee, Microgames Co. Ltd., Star International Ltd., and OFT Lending Inc. will infuse up to P200 million in fresh capital into PEP.
The share swap is anchored on Digiwave’s projected Net income for of P125.5 million given a price earnings multiple of eight times.
With the acquisition of Digiwave, PEP will be renamed Premiere Entertainment Philippines Inc. to reflect its new thrust although it will continue to produce new films.
The acquisition of Digiwave, however, is subject to the approval of PEP’s shareholders in the annual stockholders meeting scheduled on April 10.
The acquisition of Digiwave will mark PEP’s entry into the online casino gaming industry which is currently the fastest growing business in the world, registering over $8 billion to $9 billion in revenues in 2006.
Started in 2006, Digiwave aims to establish itself as the market leader in Internet gaming software in the
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