By Doris Dumlao
Philippine Daily Inquirer
First Posted 11:25:00 May 11,2009
MANILA, Philippines—Singaporean technology services provider Fastech Synergy Ltd. plans to acquire up to 100 percent of Diversified Financial Network Inc.'s overseas gaming technology arm Pacific Gaming Investments Pte. Ltd. (PGI) for about $91 million.
In a disclosure to the Philippine Stock Exchange Monday, DFNN spokesperson Czarina Turla said the DFNN board had received an offer from Fastech and agreed to negotiate within the next 90 days on the potential sale of lock, stock and barrel of PGI, which is registered in Singapore and 70-percent owned by DFNN.
Under a memorandum of understanding signed by DFNN and Fastech, the latter shall acquire a minimum of 70 percent of PGI via a stock swap.
DFNN has also pledged to exert best efforts to help Fastech acquire the remaining 30 percent balance owned by minority PGI shareholders.
Fastech will issue 1.8 million shares, giving PGI a pre-acquisition value of $80 million, which shall be distibuted by way of property dividends of Fastech Synergy Philippines. Fastech has a state-of-the-art manufacturing complex in Cabuyao, Laguna.
The post-acquisition enterprise value of PGI was estimated at $91 million for about 88.88 million shares.
Any definitive agreement will still be subject to due diligence as well as respective board, shareholders and regulatory approvals, the disclosure said.
PGI was established by DFNN in 2000 to expand the company's operations to other highly-populated South and Southeast Asian countries with promising e-commerce and business process outsourcing (BPO) prospects.
DFNN saw the opportunity as more countries in Asia started to legalize their gaming industries.