An affiliate of gaming and technology firm DFNN, Inc. is looking to enter the Australian Stock Exchange through a AUD530,000 (about P18.74 million) deal with an Australia-listed gaming operator.
In a statement to the Philippine Stock Exchange on Friday, DFNN said its affiliate HatchAsia, Inc. is arranging a deal to take control of Silver Heritage Group, Ltd.
Silver Heritage is a gaming operator in Asia with two casinos in Nepal, but is listed at the Australian Stock Exchange. Based on DFNN’s disclosure, Silver Heritage has been asked to execute a deed of company arrangement for the transaction, which will then be approved by HatchAsia.
The DFNN affiliate would need to acquire 92% of Silver Heritage’s issued share capital through the consolidation of existing shareholders, and a new issuance of ordinary shares by a new subsidiary, to be called Hatch Australia Holdings Pty Ltd.
Other details have not been finalized yet, except that the consideration for the transaction is AUD530,000 in cash and 3% of the issued shares in Silver Heritage.
“The successful conclusion would eventually result in the HatchAsia shareholder-controlled entity being listed on the Australian Stock Exchange and DFNN owning part of the ASX Listed Entity,” it said.
DFNN said the transaction would essentially provide it better access to a wider capital base and open new business streams for a larger audience reach.
“As a shareholder, we welcome and look forward to the foray of HatchAsia in the international market… Tapping the Australian capital market for this provides a conducive environment for the nature of our businesses and allows DFNN to fully value its early investments in HatchAsia,” DFNN President and CEO Calvin Lim said in the statement.
DFNN has an 18.98% ownership stake in HatchAsia. The company is engaged in business management outsourcing services, gaming outlet operations, financial technology and office leasing.
In the first six months of 2020, DFNN swung to an P83.49 million attributable net loss due to the shutdown of gaming operations amid the lockdown. Its revenues were cut 48% to P333.2 million during the period.
Shares in DFNN at the stock exchange closed flat on Friday at P3.06 each. — Denise A. Valdez