Gaming firm PhilWeb Corp. said Friday it raised P750 million from the issuance of convertible preferred shares to two major shareholders.
PhilWeb said in a disclosure to the stock exchange its board approved the issuance of 159.269 million preferred shares at a subscription price of P4.709 per share to Gregorio Araneta Inc. and PhilWeb Casino Corp. The preferred shares carry a dividend rate of 8 percent per annum.
Cash proceeds from the subscription to the convertible preferred shares will be used for capital expenditure and working capital of the company, it said. A total of 97,260 million shares were issued to GAI, a company owned by businessman Gregorio Araneta, while 62,008 shares were issued to PhilWeb Casino.
Once the preferred shares are converted into common shares, GAI’s stake in PhilWeb will rise to 58.11 percent from 57.78 percent, while PhilWeb Casino’s ownership in the company would increase to 13.73 percent from 10.94 percent.
