SEC okays P502-M share issue of Philweb

The Securities and Exchange Commission (SEC) has approved the P502.4 million share issue of information technology and online gaming firm Philweb Corp.

The issue is pursuant to the agreement signed between Philweb and e-PLDT, allowing the information technology unit of Philippine Long Distance Telephone Co. (PLDT) to subscribe to 25.12 billion Philweb shares at P0.020 each.

PhilWeb is 20 percent owned by ePLDT. Proceeds from the issue will be used by Philweb to fund its proposed Manila Bay Casino project (P200 million), the roll out of its Internet casinos (P100 million) and the marketing costs related to its Premyo sa Resibo project; and subscription to ISM Communication Corp.’s rights offering (P100 million).

The Manila Bay casino project is a six-hectare casino and hotel development project which will be the centerpiece of the Manila Bay Tourism and Leisure Corp.’s project. The Philippine Amusement and Gaming Corp. has expressed interest to set up a casino in MBTLC where it is built. Development of the casino is expected to commence next year.

Philweb provides access, business solutions, e-commerce platforms, distribution services for Internet appliances and software and invests in promising Internet start-up ventures.

It has set aside P200 million for its nationwide text-based raffle program and the construction of 60 new Internet casinos.

The company expects to make a turnaround in its financial performance this year with several projects in place, particularly Premyo sa Resibo. From a net loss of P3.9 million in 2005 due principally to write-offs of costs associated with discontinued non-gaming business, the company is seen to post a net profit of P100 million by the end of the year.

Philweb also hopes to end the year with a total of 100 Internet casinos.

Managed and operated by Pagcor-authorized entities, these gaming outlets are entertainment centers similar to Internet cafes that have at least 10 PC terminals dedicated solely to playing eCasino-Filipino games, open 24 hours daily.