Berjaya Philiippines Inc has disposed of 1 million shares in Philippines Gaming Management Corp (PGMC) for P117.2 million (US$2.3 million), with funds to be used for working capital and investment in other projects.
PGMC is involved in the leasing of lottery terminals and their maintenance for the Philippine Charity Sweepstakes Office (PCSO) as part of a Supplemental Equipment Lease Agreement which is due to expire on August 2019.
In a filing to the Philippine Stock Exchange on Monday, Berjaya said the disposal represents an “opportunity for the Issuer to unlock part of its investment in PGMC for working capital and other project investment.”
The company originally owned a total of 4.99 million shares in PGMC, representing 99.99 percent of equity interest in the company.
Following the disposal, the company will now hold 3.99 million shares in PGMC, representing 79.99 equity interest in the company. It has also reported a loss from disposal and subscription of around P372.5 million.
The purchaser of the shares is Mr. Jose A. Bernas, the Corporate Secretary of both the Issuer and PGMC.