PEP to expand into non-gaming activities

MANILA, Philippines -  Publicly-listed Premiere Entertainment Philippines Inc. (PEP) will seek to expand its business to non-gaming activities such as mining, real estate and information technology.

The company’s board of directors approved the amendment of PEP’s secondary purpose to allow it to diversify beyond its core gaming and entertainment businesses.

The board likewise approved the decrease in PEP’s authorized capital from P1.8 billion to not less than P500 million through the reduction in the par value of its shares from P1 to 20 to 30 centavos per share, as may be determined by the board.

It also gave the go-signal for an increase in the authorized capital stock to as much as P2.5 billion and an increase in the par value of the shares to up to P1.

PEP explained that the proposed reduction in par value will not affect the number of shares held by a shareholder. After the par value of the shares has been reduced, a stockholder will continue to hold the same number of shares prior to the change in par value.

The reduction in par value is intended to reduce the existing deficit in the company’s books to improve shareholder value.

PEP currently has six operating subsidiaries, namely IT gaming company Digiwave Solutions Inc., Premiere Events Palace Inc., PEP Metro Leisure Inc., Premiere Show Biz Inc., La Prima Hotel Imperiale Inc., and Premiere e-Teleservices Inc.

Earlier, PEP said that through Digiwave, it plans to establish itself as a market leader in Internet gaming software in the Philippines and eventually compete in the international arena of the industry, anchored on its expertise and experience in the interactive gaming and entertainment sphere.

It added that DWI will continue to develop more gaming software to attract new markets and to increase its market share in the online gaming industry in the Philippines and in Asia.

In 2010, PEP’s revenues reached P10 million, or 11.5 percent more than the previous year. It suffered a net loss of P34.5 million, 94 percent lower than the net loss incurred in 2009.