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PACIFIC
Gaming Investments Pte., Ltd. (PGI), the Singapore-based
subsidiary of Diversified Financial Network Inc. (DFNN),
is acquiring a 90-percent stake in Poseidon Co. Ltd. for
$4.2 million (P172 million).
Poseidon
is a slot machine-arcade operator based in Cambodia.
In a
disclosure to the stock exchange, DFNN said the purchase
is still in line with PGI’s objective to widen its
presence in the Asian gaming industry.
The said
acquisition will be done through PGI’s locally
incorporated company PGI Cambodia.
“The
acquisition is expected to be concluded before the end
of the first quarter,” DFNN, whose shares are traded at
the Philippine Stock Exchange (PSE), said.
PGI
already completed its due diligence on Poseidon—which
revenues from June 2007 to December 2007 amounted to
$21.23 million. DFNN said PGI is confident of its
ability to improve Poseidon’s profitability.
PGI will
fund the acquisition with the money it raised from a
private placement last year.
Last
December, PGI bought around 34 percent of Interactive
Entertainment Technology Solutions for $2.5 million.
With the
purchase, PGI obtained management control in the
Southeast Asian gaming firm which is engaged in event,
sports and financial spread bettings. PGI also has an
option to buy the remaining 66- percent stake upon its
listing at a suitable exchange.
DFNN and
PGI chairman Ramon Garcia Jr. said their entry into
Interactive Entertainment is just one of the many
strategic moves that will be implemented by the group in
order to gain a foothold in the growing market for
online gaming worldwide.
He noted
that wireless sports betting, particularly using mobile
phones, has been growing at a phenomenal rate in
Europe, while somewhat absent in the Asian market. PGI will provide
the gaming software expertise and marketing tie-ups in
various Asian countries.
Financial spread betting is another area that shows huge
potential for the company. By far the largest portion of
wireless betting in the United Kingdom concerns
financial instruments.
Investors use their cell phones to wager on the movement
of a stock, currency, or commodity almost anywhere in
the world. Wager amounts are small but can offer huge
returns. |
