Analysts, however, believe that the change does not mean that BWRC is out to sell computer-related products but simply to engage in on-line gambling.
BWRC’s latest move is preceded by an application filed with the Securities and Exchange Commission (SEC) for a change in name to Fairmont Holdings, Inc.
To finance its ambitious "IT program", BWRC will undertake a rights offering to raise some P4 billion. In a disclosure BWRC said it will use P2 billion of the P4 billion proceeds of the offering to finance the acquisition and development of the gaming and information technology projects.
It also will allocate P1 billion for the construction of the Sheraton Marina Square Hotel, and its casino and entertainment complex and other real estate projects. The rest of the proceeds will augment its working capital.
BWRC will offer 4.215 billion shares with a par value of P1 per share. A shareholder will be entitled to 2.5 new shares for every share currently held.
Sheraton Marina Square Hotel and Mall Complex, BWRC’s anchor project, is unfinished but it has reaffirmed its commitment to finish the project. BWRC has signed an agreement with Pentagold Corp. to take over the construction of the complex.
BWRC said it expects the complex to be completed by end of 2001 and start its operations by 2002. BWRC signed a memorandum of agreement with Pagcor last June 30, 1999 for the lease of a portion of the complex for its office and casino.
However, President Estrada’s recent pronouncement to privatize Pagcor worries BWRC. "If Pagcor is privatized, the firm will be forced to go to the private firms which will take charge of gambling," an industry source said.