LRWC to acquire PAGCOR eGames operator Digiwave Solutions

lrwc-digiwave-acquisitionLeisure & Resorts World Corporation (LRWC) has announced its pending acquisition of Digiwave Solutions Inc., the largest company licensed to operate eGames outlets on behalf of the Philippine Amusement and Gaming Corporation (PAGCOR). On Tuesday, LRWC made an offer of P620m (US $14.1m) to acquire 100% of Digiwave from Premiere Horizon Alliance Corp (PHA), which holds 85% of Digiwave shares. On Wednesday, the PHA board unanimously approved LRWC’s offer and the deal is expected to conclude by June 15 following the necessary due diligence and approval by PHA shareholders.

Digiwave currently operates 45 eGames outlets in Manila and surrounding provinces. LRWC investor relations officer Alfredo Reyes told Business World that the eGames outlets would complement LRWC’s existing stock of 75 bingo parlors, which operate under the Bingo Bonanza brand. Reyes said LRWC had planned to add an additional 20 to 30 bingo sites and that the Digiwave acquisition will allow LRWC to “take on bingo parlors rather than start with new outlets.”

Other LRWC subsidiaries operate the Midas Hotel and Casino in Manila and the King’s Royal Hotel and Leisure Park in Pampanga. LRWC also has a stake in City of Dreams Manila, the Entertainment City resort casino being developed by Melco Crown Entertainment and Belle Corp (the latter holds an ownership stake in LRWC) which is set to open later this year. As well, LRWC also controls the First Cagayan Leisure and Resort Corporation, which is licensed by the Cagayan Economic Zone Authority (CEZA) to conduct online gambling operations in the Cagayan Special Economic Zone Freeport.