PhilWeb-ISM completes acquisition of German firm

MANILA, Philippines - Host Union International Ltd., a Hong Kong-based company jointly owned by PhilWeb Corp. and ISM Communications Corp., has completed the acquisition of a 65-percent stake in Acentic GmbH, a Germany-based international provider of digital and Internet protocol converged services to hotels, tourism facilities and healthcare facilities.

Host Union acquired 650,000 shares held by LBC Capital S.A.R.L in Acentic for P1.3 billion. The remaining 35 percent of Acentic will be retained by Niantic Holdings, a German provider of minibar services.

Incorporated in 2003, Acentic provides in-room entertainment including digital television and high-speed Internet access for several top hotel groups, including Intercontinental, Hilton, Hyatt, Marriott and Starwood, in more than 30 countries in Europe, the Middle East and Africa.

PhilWeb and ISM also arranged for a bank loan for Acentic in the amount of $22.6 million for working capital and expansion requirements. The 65-percent stake will be divided equally between PhilWeb and ISM.

With the acquisition of Acentic, PhilWeb and ISM expect a dramatic growth in their gaming business, which is currently limited to the Philippine market. The group is eyeing to expand to major countries like Europe and the Middle East to further boost growth.

The entry of PhilWeb and ISM will allow Acentic to grow its predominantly European market to include the Asia-Pacific region, the fastest growing hotel market in the world. PhilWeb will have an instant platform of 200,000 rooms in Europe as a market for its Internet gaming offerings, giving it enormous opportunities to expand its gaming business.

Following the purchase, PhilWeb and ISM are to launch Acentic Asia to serve as a subsidiary of Acentic. 

PhilWeb, which owns and manages nearly 50 Internet business casinos as well as the Home Play brand, used internally-generated funds to acquire its stake in Acentic.

ISM, on the other hand, will use funds it has raised from a P655-million stock rights offering last January as well as a $10-million private placement made by the UK-listed Ashmore Group in November 2007 and the remainder of a P300-million stock rights offering conducted in June 2007 to purchase its stake.