PhilWeb and JKS Tech Sign $67.4M Cross-Investment Pact

PhilWeb Corp. and JKS Tech Solutions Inc. have signed a major cross-investment deal worth some $67.4 million, solidifying their positions in the growing digital gaming and technology market in the Philippines. JKS Tech Acquires 4.85% PhilWeb Stake Under the agreement, JKS Tech will acquire an 81.38 million share interest in PhilWeb, representing 4.85% of the company’s issued and outstanding shares. The shares are priced at PHP16.50 ($0.26) apiece, making the deal worth about PHP1.34 billion ($21.4 million), reported the Manila Bulletin. The acquisition will be finalized in two closings. The first tranche will involve the transfer of 20.35 million PhilWeb shares valued at about PHP335.7 million ($5.4 million). The remaining 61.04 million shares valued at about PHP1.01 billion ($16.1 million) will be transferred in the second tranche. PhilWeb, in contrast, will purchase JKS Tech through a separate share subscription. The gaming technology company will buy 3.41 million Common B shares in JKS worth PHP394 ($6.28) apiece for another PHP1.34 billion ($21.4 million) commitment. The amount shall be equal to the value of JKS Tech’s investment in PhilWeb. The transaction is also being undertaken by the company’s wholly owned subsidiary, PhilWeb Capital Corp. It also agreed to buy 7.32 million Common B shares of JKS Tech at the same price of PHP394 ($6.28), bringing the subsidiary’s investment to about PHP2.88 billion ($46 million). This means that the total investment of PhilWeb and its subsidiary is almost PHP4.23 billion ($67.4 million). PhilWeb Expands Digital Gaming Strategy Through JKS Tech Deal The new JKS shares will be drawn from a proposed increase in the company’s authorized capital pending the approval of shareholders and the Securities and Exchange Commission and other regulatory requirements. JKS Tech is a Philippine business-to-business technology and digital infrastructure provider in the digital entertainment market for licensed operators. It is a Gaming System Administrator listed by the Philippine Amusement and Gaming Corp (PAGCOR). One of the platforms it supports is Epic Game. The investment is part of PhilWeb’s ongoing repositioning as a technology-focused provider to regulated online gaming businesses. Its platform and gaming technology services already serve several major Philippine casino and gaming operators, including Okada Manila, Newport World Resorts, NUSTAR Resort and Casino, and Hann Casino Resort. The company has also been building up its technology capabilities through artificial intelligence. Its roadmap includes tools for real-time monitoring, automated compliance processes, fraud prevention, risk management, and customer data analysis. The cross-investment comes after businessman Lance Gokongwei was recently named PhilWeb chairman. The leadership change was presented as part of a larger corporate restructuring and a pivot to a tech-driven B2B company. The new capital will enable JKS Tech to continue the development of its digital infrastructure and gaming platforms while PhilWeb takes a strategic stake in a company serving the mid-market segment of the Philippine online gaming industry.