MANILA, Philippines - Singaporean company Straitwey is investing $7.5 million in primary and secondary shares of Pacific Gaming Investments (PGI) to be used by the latter for investments in the local gaming industry.
Straitwey is a wholly owned subsidiary of the Japan Gaming Development Organization (JGDO) and is the investment entity used by JGDO to invest into projects within the gaming industry.
The investment into PGI will be used to partially fund an increase in its investment stake of Interactive Entertainment Solutions Technologies Inc (IEST), which currently operates an on-line gaming operation under authority of the Philippine Gaming and Amusements Corp. (Pagcor), working capital needs of PGI and other further investments in the gaming sector.
IEST is engaged in providing software and IT solutions for sports betting companies. It has contracts to supply equipment to Pagcor.
PGI and IEST are subsidiaries of publicly listed information technology solutions provider and systems integrator Diversified Financial Network Inc. (DFNN).
With the advent of the opening of the gaming industry, both land based and electronic in Asia, DFNN earlier created a division to cater to the needs of the emerging Asian gaming industry.
DFNN said its gaming solutions span the capability for wireless gaming, game creation, and gaming related project management and software outsourcing and that it is willing to cater its gaming products to the needed business processes of legal gaming entities operating in legal gaming jurisdictions.
The board of directors of PGI earlier approved the execution of a non-binding term sheet with Straitwey, a Singapore registered company.
Under said non-binding term sheet, Straitwey, subject to due diligence, shall invest a maximum of $7 million in primary and secondary shares of PGI. The primary share investment gives a pre money valuation to PGI of $80 million.