PACIFIC Online Systems Corp. has divested its shares in wholly owned subsidiary Lucky Circle Corp. (LCC) to focus on its online gaming business.
The listed gaming company told the stock exchange yesterday it has concluded selling its 125 million shares in LCC at P1.082 each to Maison Noble Holdings, Inc. The transaction will be paid for in cash once the sale documents are executed.
“With the online gaming business fast becoming a more challenging environment owing to the proliferation of other forms of gaming, legal or otherwise, it has been decided by the board of directors that the Pacific Online Group should focus its resources to its principal business of providing modern and efficient online gaming facilities and equipment to its customers,” it said.
It added LCC has been posting net losses in the past three to four years, dragging Pacific Online’s bottomline. “With LCC no longer part of the Pacific Online Group, its losses will no longer be taken up by Pacific Online after the sale thereof,” it said.
LCC is in the business of operating outlets that sell Lotto, Keno and other instant scratch tickets from the Philippine Charity Sweepstakes Office (PSCO). It has been part of the Pacific Online Group since October 2007.
“The divestment from LCC, which is engaged in the retail business, has been decided in furtherance of this directive for the Pacific Online Group to focus on its core business,” the listed firm said.
Pacific Online will focus on being a lessor of an online lottery system to the PCSO, as its other subsidiary, Total Gaming Technologies, Inc., focuses on leasing equipment for PCSO’s Keno game.
Pacific Online reported an attributable net loss of P200.6 million in the first nine months of 2019, a reversal of the previous year’s earnings of P291.25 million. Its shares at the stock exchange closed flat on Thursday at P2 each. — Denise A. Valdez