Saturday, 8 March 2008

DFNN to close deals across Asia

The Manila Times
Friday, March 07, 2008

DIVERSIFIED Financial Network Inc. (DFNN) is set to fold in a Cambodian slot machine operator and is eyeing similar deals in Japan and Singapore through its wholly-owned gaming subsidiary.

In a disclosure to the Philippine Stock Exchange, DFNN said Singapore-based unit Pacific Gaming Investments Pte Ltd. (PGI) has concluded due diligence on Poseidon Co. Ltd., a Cambodian slot machine operator, which would be acquired this month.

Results of the due diligence showed that Poseidon posted revenues of $21.23 million for the seven-month period that ended in December last year with a net profit of $1.086 million.
DFNN disclosed that PGI would be acquiring 90 percent of Poseidon for $4.2 million through a locally incorporated company in Cambodia called PGI Cambodia.

Miguel Manzano, DFNN director told The Manila Times on Thursday that the company is also eyeing similar deals around the region and is negotiating with several slot machine and online gaming operators in Singapore and Japan as part of PGI’s aggressive expansion program.

He however was mum on how much the company is willing to spend for these firms as the possible deals in the two countries are still at the preliminary stage.

Earlier, DFNN announced that Hatchasia Inc., its business process outsourcing (BPO) leasing unit, would be selling up to 33 percent of the company for the first time by the second half this year. Hatchasia aims to raise P100 million to P200 million in fresh capital to fund its expansion to the provinces and possible acquisitions.

The firm is looking at expanding its operations—mainly the provision of BPO facilities to start up and established firms that need shared facilities and resources in the IT, logistics and education sectors—in new growth areas like Clark, Subic and Tarlac. Besides being on the look out for opportunities in online gaming and education, Hatchasia may also consider acquiring BPO operations and assets.

At present, Hatchasia has about 9,000 square meters of office space in Fort Bonifacio leased out to companies like Marubeni Power Corp. and a Filipino animation studio.

Another DFNN unit, Intelligent Wave Inc., would still push through with its planned maiden share offering to the public also by the second half this year to raise about $5 million to $6 million to boost its manpower and infrastructure.

The software development subsidiary initially planned to expand operations and increase personnel from 100 to 500 while developing software for business applications with some Japanese companies.

--Likha C. Cuevas-Miel

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