DFNN to acquire Cambodian slot machine operator

Listed information technology solutions provider Diversified Financial Network Inc. (DFNN) said it is pursuing a plan to acquire 90 percent of  Poseidon Co. Ltd, a slot machine arcade operator in Cambodia, for $4.2 million.

In a disclosure to the Philippine Stock Exchange (PSE), DFNN said the acquisition of Poseidon, which is expected to be concluded before the end of the first quarter this year, will be done through a locally incorporated company in Cambodia, PGI Cambodia.

DFNN said the move follows a due diligence audit conducted by its Singapore-based subsidiary Pacific Gaming Investments Pte. Ltd on Poseidon.

Based on its unaudited financial statements for the period June 2007 to December 2007, Poseidon posted a net profit of $1.09 million on  revenues of  $21.23 million.   Gross profit amounted to $2.41 million during the seven-month period,

 “The management of PGI is confident of its ability to improve the profitability of the operations,” DFNN said.

DFNN director Miguel Manzano said funding for the purchase will come from internally-generated funds and a planned $15 million private placement of shares.

Formed on April 12, 2007, Poseidon is engaged in the business of building structure for gaming and gaming merchandise.

DFNN said the acquisition was part of its plan to gain foothold in the Cambodian gaming industry and further expand into the Asian gaming industry.

DFNN noted that Cambodia has been attracting a lot of foreign investments and tourists. Last year, it had 1.7 million foreign visitors, 20 percent higher than the previous year.

Pacific Gaming recently acquired a 33.33 percent interest in Interactive Entertainment Technology Solutions (IETS) for roughly $2.5 million. 

IETS was incorporated to engage in the business of providing software and solutions for the gaming industry.  It is involved in event, sports and financial spread betting and has contracts to provide equipment and software to state gaming regulator Philippine Amusement and Gaming Corp. (Pagcor).

Financial spread betting is another area that shows huge potential for the company. By far the largest portion of wireless betting in the United Kingdom concerns financial instruments.

Investors use their cellphone to bet on movement of a stock, currency, or commodity almost anywhere in the world. Bets are small but returns are large.