Leisure and Resorts World Corp (LRWC) has finalized its acquisition of Digiwave Solutions Inc., the biggest operator of the Philippine Amusement and Gaming Corporation’s (PAGCOR) e-Games outlets in the Philippines.
Speaking to InterAksyon.com, LWRC head of investor relations Freddie Reyes said the company is currently in talks with three banks to raise between Php400 million to Php500 million ($9.2 to $11.5 million) to help finance the acquisition price of Php620 million ($14.2 million) with Digiwave before early August.
Back in May, it was assumed that the transaction would be completed no later than June but the negotiations continued after a disclosure to the Philippine Stock Exchange revealed that Premier Horizon Alliance Corp (PHA), which owns 85 percent of Digiwave, transferred all of its Digiwave assets, including the 45 eGames stations it owns, to Total GamezoneXtreme Inc. (TGXI).
PHA and minority shareholders of Digiwave have already agreed to go into a share purchase agreement with LRWC to acquire TGXI.
Reyes is confident that the company will be able to come up with that total, saying that apart from taking on fresh bank debt, the company is going to its existing credit lines or internally generated funds to make up the difference.
The two sides have agreed on a payment scheme wherein LWRC can pay an initial down payment and then stretch out the balance in a given period time that coincides with the transition of moving all of Digiwave’s assets to LWRC.
Once the deal is completed, LWRC’s gaming portfolio in the Philippines will grow to include the 45 e-Games outlets, the Midas Hotel in Manila purchased in November 2012 and it has a foot inside PAGCOR’s Entertainment City; it provided funding for Belle Corp to accelerate the construction of City of Dreams Manila. The company also runs gaming operations of Bingo Bonanza Corp., in addition to all gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport under First Cagayan Leisure and Resort Corp.
