PhilWeb Corp. and JKS Tech Solutions Inc. have struck a landmark cross-equity investment agreement worth a combined PHP 4.23bn, equivalent to approximately US$67.5m.
The deal involves PhilWeb Corp. and its wholly owned subsidiary PhilWeb Capital Corp. subscribing for a significant volume of JKS Tech Solutions shares across two separate agreements.
Under the terms of the arrangement, JKS Tech Solutions will also acquire a 4.85% stake in PhilWeb, making this a genuine two-way investment between the two Philippine gaming technology firms.
JKS will pay PHP 16.50 per share through a share purchase agreement to secure its holding in PhilWeb, according to reporting by the Manila Standard.
The transaction is structured to close across two distinct stages, with PhilWeb first selling 20.35 million shares for PHP 335.7m to initiate the process.
A further 61.04 million shares will then be sold for PHP 1.01bn, bringing the total value of the JKS stake in PhilWeb to approximately PHP 1.34bn.
On the other side of the agreement, PhilWeb will subscribe to 3,408,079 Common B Shares in JKS at PHP 394 per share, for an aggregate subscription price of PHP 1.34bn.
That figure is notably identical to the price paid by JKS for its corresponding stake in PhilWeb, underlining the symmetrical nature of this cross-equity structure.
PhilWeb Capital Corp. will then take the investment further by subscribing to an additional 7,317,996 Common B Shares in JKS for an aggregate consideration of PHP 2.88bn.
The Philippine Stock Exchange moved swiftly in response to the announcement, suspending trading in PhilWeb shares pending the submission of additional information on the deal.
Regulatory hurdles remain before the transaction can be finalised, including approval from JKS shareholders and the Philippine Securities and Exchange Commission.
The deal also remains subject to other applicable regulatory requirements and the specific terms outlined within the subscription agreements signed by both parties.
This agreement marks a significant moment for Philippine gaming technology, with two major domestic players deepening their financial ties through a structured and mutually beneficial cross-investment.
