PACIFIC Online Systems Corp. entered a joint venture (JV) for a government bidding with the Philippine Gaming Management Corp. (PGMC) and International Lottery & Totalizator Systems, Inc. (ILTS).
The three will participate in the procurement by the Philippine Charity Sweepstakes Office (PCSO) for a five-year lease of its customized lottery system called the 2021 PLS Project. The bid submission is scheduled for Monday.
“A successful bid by the joint venture will mean that Pacific Online will continue on as part of the group, which will be leasing new online lottery equipment for the lotto operations nationwide of the PCSO,” the company said in a disclosure to the exchange on Monday.
Under the conditions of the joint venture, Pacific Online will cover 50% of the investment, PGMC will account for 49%, and ILTS will contribute 1%.
PGMC will be assigned as the lead joint venture partner and is expected to represent the three companies through the bidding process.
“Arrangements with regard to the management and operations of the joint venture company, once it is formally organized as a separate juridical entity will be agreed upon at a later date,” Pacific Online said.
The joint venture will have to be incorporated and registered with the Securities and Exchange Commission as required by the PCSO bidding rules.
Pacific Online provides technical and market expertise on lottery product distribution in the Philippines with state-run PCSO through an existing maintenance repair agreement and an equipment lease agreement.
On Monday, Pacific Online shares at the stock exchange rose by 2.88% or P0.06 to close at P2.14 apiece. — Keren Concepcion G. Valmonte