SEC Oks PEP-Digiwave share swap deal

ABS-CBN News

Posted at Feb 17 2009 06:21 PM | Updated as of Feb 18 2009 02:39 AM

A P1-billion share-swap deal between publicly-listed firm Premiere Entertainment Philippines Inc. (PEP) and online gaming and software developer Digiwave Solutions Inc. has been approved by the Securities and Exchange Commission.

The share swap agreement calls for the issuance of 500,000 shares of PEP in exchange for 100 percent ownership of Korean-controlled Digiwave.

In turn, Digiwave shareholders will own around 70 percent of PEP, which is engage in the production of full-length motion pictures and program content for free television, cable broadcast and video distribution.

The acquisition of Digiwave is expected to boost PEP's financial standing since the former recently raised $3 million from the sale of its software packages to a foreign company.

Through Digiwave, PEP will now be an active player in the booming Philippine online gaming software market.

Digiwave is currently supplying games like Baduki and 7-Card Stud poker which are deployed to all PEGS branches of Philippine Amusement and Gaming through the facilities of Philweb.

Founded in August 9, 2006, Digiwave is a Philippine-based entertainment and IT company principally focused on software development and provision, particularly for leisure gaming purposes, using state-of-the-art South Korean technology.