MANILA, Philippines - GMA New Media Inc. (GNMI), a wholly-owned subsidiary of listed broadcast giant GMA Network Inc., is set complete the sale of its online gaming business to gaming firm IO E-Game Ventures Inc.
IP E-Game Ventures alternate corporate information officer Albert Vincent Yu Chang informed the Philippine Stock Exchange (PSE) yesterday that the company’s board has approved the proposed transaction with GNMI.
Under the proposed transaction, Chang said the gaming firm would acquire X-Play Online Games Inc. from GNMI.
In return, the wholly-owned subsidiary of GMA would acquire a stake in the gaming firm.
Change added that the company’s board has authorized the company president to negotiate the terms of the transaction, deliver and execute documents, and perform actions that would be in the best interest of the corporation.
The information officer said IP E-Game Ventures would raise its existing authorized capital stock of P300 million consisting of 30 billion shares with a par value of one centavo per share by P2.5 billion consisting of 250 billion shares with a par value of one centavo per share.
As early as January 2011, GNMI announced its decision to dispose its shareholdings in X-Play for a total consideration of P75 million. It entered into an agreement with IP E-Game Ventures. Both companies executed an option agreement whereby GNMI was granted an option to sell its shareholdings in X-Play to IP E-Game Ventures within a period of one year from execution date on Oct. 19, 2011.
In connection with the planned disposal of X-Play, GNMI and IP E-Game Ventures agreed last March last year to extend until Sept. 30, 2013 the exercise period of the option agreement which both companies entered last 2011.
GNMI also agreed to subscribe to P130 million worth of shares of the authorized but unissued capital stock of IP E-Game Ventures to be offered on its initial public offering (IPO) in exchange for GNMI shares of stock in X-Play at a subscription price per share equivalent to the offering price.
GNMI pioneered convergent applications for broadcast, Internet, and mobile platforms while IP E-Game Ventures is engaged primarily in the business ofinteractive gaming and content distribution.