LRWC acquires biggest Pagcor e-games operator

MANILA, Philippines - Hotel and recreation firm Leisure & Resorts World Corp. (LRWC) is expanding into the online casino business by acquiring the biggest operator of Philippine Amusement and Gaming Corp. (Pagcor) e-Games stations.

In a regulatory filing, LRWC said it “executed a letter offer to the current shareholders of Digiwave Solutions Inc. for the company’s acquisition of 100 percent of the outstanding capital stock of Digiwave at the price of P620 million.”

Digiwave is the current market leader in the operations of Pagcor e-Games stations in Metro Manila and nearby provinces.

“Upon satisfactory results of the due diligence, the parties shall enter into a share purchase agreement and other definitive implementing agreements for the sale and purchase of the shares,” LRWC said.

Digiwave is 85-percent owned by listed Premiere Horizon Alliance Corp., with the remaining shares held by private stockholders.

“The offer also requires that Digiwave deliver 45 Pagcor e-Games stations on or before the closing date to be agreed upon by the parties,” LRWC said.

In February, Premiere Horizon’s board of directors approved a plan to list Digiwave in the local bourse in the third quarter.

Founded in 2006, Digiwave’s goal is to establish itself as the market leader in Internet gaming software in the Philippines and eventually compete in the international arena anchored on its proven expertise, experience and innovations in interactive gaming and entertainment.

It is also into boutique service residences through Y2 Residence Hotel in Makati and mining via a partnership with Asian Alliance Investment Corp. and Palawan Alpha South Resource Development Corp.

For its part, LRWC beefed up its casino business in September after wholly-owned subsidiary Prime Investment Korea Inc. and Pagcor implemented a supplement junket agreement targeting foreigners.

The development allows LRWC and Pagcor to enhance the existing junket gaming operations in the Casino Filipino located at Midas Hotel and Casino along Roxas Blvd. The agreement includes the provision to operate gaming tables equipped with high-definition video cameras, voice over Internet protocol facilities, and other Internet data facilities.

The hotel and recreation firm is ramping up its bingo and hotel gaming facilities. It budgeted P500 million to build an annex for Midas Hotel and Casino.

LRWC is also one of the companies behind the $1.3-billion Melco City of Dreams Manila integrated casino complex in Parañaque. LRWC’s subsidiary AB Leisure Global Inc. is entitled to 30 percent of the fixed yearly income generated from the lease of all commercial space in the casino project.