Macau firm to invest $20 million in DFNN

MANILA, Philippines - Macau-based Cowson Holdings Ltd. plans to invest as much as $20 million into publicly-listed DFNN Group of Companies.

DFNN said it has received a non-binding term sheet from Cowson and Kirschner Games International Inc. (KGI), a Philippine company, under which Cowson, subject to due diligence, will invest a maximum of $3 million in primary shares of DFNN at an agreed price of P25 per share.

The primary investment into DFNN will be used to partially fund a purchase of a still to be determined amount of shares in KGI, which supplies technologies and systems for use in the gaming operations of the Philippine Amusement and Gaming Corp. (Pagcor).

Under the term sheet, the parties have agreed to allow Cowson to assist in managing the operations of KGI under an appropriate management agreement. Cowson’s management is composed of successful and experienced technology and gaming executives from Macau.

A further minimum of $3 million will be used to purchase DFNN secondary shares from the open market with the view of acquiring a board seat.

Cowson shall have the option to invest another $7 million in shares of Pacific Gaming Investments (PGI), DFNN’s majority-owned gaming subsidiary, when the latter is listed on the Singapore Stock Exchange.

DFNN also disclosed yesterday that Cowson has committed an additional $7 million to fund the operations of KGI with respect to fully developing gaming provision and technology business.

Cowson has been given 45 days from the execution of the term sheet within which to complete its due diligence. During the same period, DFNN, Cowson and KGI shall negotiate the terms of more definitive agreements implementing the investment of Cowson into DFNN and the subsequent investment of DFNN into KGI.

Earlier last week, PGI executed a term sheet with Straitwey Pte. Ltd., a subsidiary of the Japan Gaming Development Organization (JGDO) in which it was to invest $5 million in primary shares at $255.98 in PGI and another $2 million in secondary shares.

Cowson is a consulting and engineering firm registered in Macau. Its clients include the Chinese government and its agencies in both Macau and China (specifically in the Pearl Delta region).

It deals with various international corporations and listed companies.

Cowson also act as agents and suppliers for a number of international electrical branding goods and wares.

Meanwhile, Kirschner Games is in the business of managing projects related to new media gaming solutions in terms of providing content for the operation and the infrastructure of hardware, network, and software related to the gaming operations required.

KGI also provides the distribution channels and marketing or publicity services for successful sales of new media games.

KGI officials said the company intends to cater to new media and games not normally found in a land-based casino environment.