PEP cleared to go into mining, real estate

MANILA, Philippines - Listed gaming firm Premiere Entertainment Productions Inc. (PEP) has obtained the Securities and Exchange Commission’s nod to engage in real estate development and mining as it seeks to boost profitability.

In a disclosure to the Philippine Stock Exchange, PEP said the SEC likewise approved the change of its corporate name to Premiere Horizon Alliance Corp.

In addition, the SEC approved the decrease in authorized capital of PEP from P1.8 billion to P563.56 million, as well as the change of its par value from P1 per share to P0.25 each share.

“With SEC’s approval, we can now execute various continuing fund-raising activities within the first half of the year,” said PEP chairman Augusto A. Serafica Jr.

He said the company is looking to raise as much as P300 million through a private placement to institutional investors, and a stock rights offering. Proceeds will be used to expand the group’s gaming operations and fund its foray into mining.

PEP, which is owned by a group of low-key Filipino investors, plans to put up more PAGCOR e-game stations, doubling last year’s level, Serafica said.

The company was earlier targeted to end 2011 with 12 e-game stores.

PEP is engaged in various types of entertainment including gaming and online casino operations. Starting as a production house in 1946, it produced full-length motion pictures and program content for television broadcast.

A merger with Digiwave Solutions Inc. in 2008 converged the company’s business focus on entertainment with the growing Internet casino gaming and software development.

At present, PEP has four operating subsidiaries-Digiwave, Premiere Events Palace Inc., PEP Metro Leisure Inc. and Premiere e-Teleservices Inc.