UK-based equity firm to invest $10 million in Premiere Entertainment

MANILA, Philippines - The UK-based equity firm Global Emerging Markets Group, has signed an agreement to acquire up to $10 million in publicly-listed gaming firm Premiere Entertainment Philippines Inc. (PEP) over a three-year period.

Founded in 1991, the GEM Group is a $2.7-billion alternative investment group that manages a diverse set of investment vehicles focused on emerging markets across the world.

Under the agreement, PEP may, at its sole option and discretion, require GEM to subscribe for ordinary shares in PEP equivalent to up to $10 million or P470 million.

“The agreement is one feature of the overall long-term funding strategy for PEP which will allow the corporation access to capital, if and when required, over multiple drawdowns, thereby minimizing dilution to existing shareholders,” PEP said in a statement.

The money will be used to fund PEP’s future business activities and the expansion of its operating subsidiaries.

PEP shall have control on the amount and timing of any investment, through its issuance of a series of drawdown notices.

Jung Ku Lee, chairman and chief executive officer of PEP, said the investment agreement “demonstrates GEM’s recognition

of PEP’s potential at this time of global financial crisis, which in itself is a vote of confidence for the corporation, its services and projects.”

Lee said the company can raise more funds from other strategic investors.

The GEM Group has offices in London, New York, Paris and Hong Kong. It has completed more than 230 transactions representing investment in over 200 companies in 45 countries across the world.

PEP, on the other hand, is engaged in entertainment, gaming and leisure activities. A subsidiary, Premium Events Palace Inc., is involved in land bingo parlor operations.