JKS raises PhilWeb stake to 14.22% in P2.88B deal
JKS Tech Solutions Inc. is set to increase its JKS PhilWeb stake to approximately 14.22% after agreeing to acquire 219.05 million additional PhilWeb Corp. shares in a transaction valued at about PHP2.88 billion.
The deal, disclosed by PhilWeb on September 28, involves 157.04 million common shares priced at PHP16.50 each and 62.01 million preferred shares priced at PHP4.71 each. The transaction was formalized through a share purchase agreement between PhilWeb Capital Corp. (PCC), a PhilWeb subsidiary, and JKS.
The latest transaction builds on an earlier share sale between the companies and forms part of a broader strategic relationship focused on technology and digital infrastructure for the Philippine gaming and digital entertainment market.
JKS PhilWeb stake set to reach 14.22%
Under the latest agreement, PCC will transfer a total of 219,053,075 existing PhilWeb shares to JKS for an aggregate consideration of PHP2.883 billion.
The common share portion consists of 157,044,156 shares at PHP16.50 per share, representing approximately PHP2.591 billion. The preferred share component covers 62,008,919 shares at PHP4.71 each, worth approximately PHP292.06 million.
Upon completion, JKS is expected to hold approximately 14.22% of PhilWeb’s issued and outstanding shares, taking into account shares previously acquired from the company.
The transaction involves existing shares held by PCC rather than newly issued PhilWeb stock. As a result, PhilWeb said the deal will not increase its issued and outstanding shares.
Transaction will be completed in two closings
The PHP2.88 billion share purchase is structured in two stages.
During the first closing, PCC will sell 10.92 million common shares to JKS for approximately PHP180.21 million. The first stage remains subject to applicable closing conditions, including approval from the Philippine Stock Exchange for the block sale.
The second closing covers the remaining 146.12 million common shares and 62.01 million preferred shares, with a total consideration of approximately PHP2.70 billion. This stage requires, among other conditions, Securities and Exchange Commission approval of JKS’s proposed increase in authorized capital stock and PSE approval of the applicable block sale.
The transaction therefore remains subject to the conditions contained in the share purchase agreement and applicable corporate, PSE, SEC and other regulatory requirements.
PhilWeb and JKS expand strategic technology link
PhilWeb described the transaction as part of strategic investment initiatives involving JKS, which it identifies as a Philippine business-to-business technology, platform and digital infrastructure company serving licensed mid-market operators in the digital entertainment sector.
PhilWeb President Brian Ng said the companies are focused on progressively integrating systems, technology, data and selected shared services.
The stated objective is to develop a more efficient and scalable B2B infrastructure platform, adding an operational dimension to JKS’s increased equity position in PhilWeb.
JKS is also an established participant in the Philippine regulated gaming technology market. PAGCOR’s published list of accredited gaming system administrators identifies JKS Tech Solutions and its Epic Game brand, with offerings including electronic casino games, sports betting and other gaming categories.
Deal follows earlier PHP1.34 billion share sale
The latest agreement follows PhilWeb’s September 7 agreement to sell 81.38 million treasury common shares to JKS at PHP16.50 per share.
That earlier transaction was valued at approximately PHP1.34 billion and represented around 4.85% of PhilWeb’s issued and outstanding shares.
PhilWeb had also entered into subscription agreements to invest a combined PHP4.23 billion in JKS through its own subscription for JKS Common B shares. The September transactions therefore establish a broader cross-company investment relationship rather than a standalone share purchase.
The latest PhilWeb disclosure indicates that JKS’s expected 14.22% ownership will be reached upon completion of the new transaction and the previously acquired shares.
What the deal means for Philippine gaming technology
The transaction places greater emphasis on the technology and infrastructure side of the Philippine digital gaming market.
Rather than involving the issuance of new PhilWeb shares, the latest agreement transfers existing shares held by PCC. At the same time, PhilWeb and JKS have outlined plans to integrate selected systems, technology, data and shared services.
For the companies, the arrangement combines an increased JKS ownership position with an operational strategy centered on B2B infrastructure and services for licensed digital entertainment businesses.
Completion remains dependent on the relevant transaction conditions and regulatory approvals.
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