Macau gaming firm offers to buy into listed DFNN

A Macau-based gaming company has offered to buy $3 million (about P138 million) worth of primary shares of listed DFNN, Inc., which will use the money to buy into a local gaming firm. Macau-based Cowson Holdings, Ltd. may also buy $3 million more worth of DFNN secondary shares in the open market so it can get one board seat in the company, DFNN told the Philippine Stock Exchange on Monday. DFNN said Cowson would buy the shares for P25 apiece. It will use the proceeds to partially fund its acquisition of local company Kirschner Games International, Inc. (KGI), which supplies the technology used by the state-owned Philippine Amusement and Gaming Corporation (Pagcor) in its gaming operations. KGI caters to new media and games not normally found in a land based casino environment. "Under the term sheet, the parties have agreed to allow Cowson to assist in managing the operations of KGI under an appropriate management agreement," DFNN told the bourse. It added that Cowson might invest another $7 million (about P322 million) in Singapore-registered Pacific Gaming Investments Pte Ltd, the overseas gaming arm of DFNN. Likewise, Cowson has committed to infuse an additional $7 million to fund the operations of KGI with respect to fully developing its technology business. DFNN has given Cowson 45 days within which to complete its due diligence. "During the same period, DFNN, Cowson and KGI [will] negotiate the terms of more definitive agreements implementing the investment of Cowson in DFNN and the subsequent investment of DFNN in KGI," it added. The clients of Cowson, a consulting and engineering firm registered in the Macau Special Administrative Region, include the Chinese government and its agencies in both Macau and China's Pearl Delta region. Cowson also acts as an agent and supplier for a number of international electrical branding goods and wares. Last week, DFNN announced that Singapore-based Straitwey Pte Ltd had offered to buy $7 million worth of primary and secondary shares of Pacific Gaming. Pacific Gaming will use the money to partially fund a hike in its investment stake in Inter-Active Entertainment Solutions Technologies, Inc., which operates an online gaming operation under the Pagcor. The company will also use the fund for its working capital and other investments in the gambling industry, DFNN said. In May last year, DFNN said Singaporean technology service provider Fastech Synergy Ltd. wanted to buy up to 100 percent of Pacific Gaming for about $91 million. Last December 21, DFNN told the exchange it had received an e-mail from Fastech informing it that it would push back its hiring of a financial adviser to this month because of the Christmas holidays. — NPA, GMANews.TV