DFNN unit to buy 90% of Cambodian gaming firm for $4.2M

Diversified Financial Network Inc. (DFNN) said Wednesday its Singaporean unit Pacific Gaming Investments Pte. Limited will acquire a 90-percent stake in a Cambodian slot machine operator for $4.2 million.

DFNN said Pacific Gaming has conducted a due diligence audit on Poseidon Co. Limited of Cambodia and decided to push through with its acquisition.

From June to December 2007, Poseidon generated revenues of $21.2 million and a net profit of $1.09 million, said DFNN. Its gross profit for the first two months of 2008 amounted to $518,315.

DFNN said the purchase will be accomplished by a locally incorporated company in Cambodia, PGI Cambodia, and will be completed before the end of the first quarter.

DFNN said the acquisition was part of its plan to gain foothold in the Cambodian gaming industry and further its expansion in Asia.