PhilWeb Shares Jump on JKS Investment Details
PhilWeb Corp. saw its stock price rise after disclosing a 4.23-billion-peso investment in JKS Tech Solutions, a move that briefly halted trading on the Philippine Stock Exchange.
Shares of PhilWeb Corp. increased last week after the company detailed a 4.23-billion-peso investment in JKS Tech Solutions, Inc. The transaction triggered a temporary suspension of trading on the Philippine Stock Exchange. From September 7 to 11, PhilWeb was the 15th most actively traded stock, with 25.97 million shares changing hands for 398.29 million pesos.
The stock closed Friday at 15.50 pesos, a 7.6% gain from the previous week's close of 14.40 pesos. This outperformed the services sector, which rose 3.9%, and the PSEi index, which fell 0.5%. Year-to-date, PhilWeb shares have climbed 150%, significantly exceeding the 42.5% gain in the services sector and the 0.2% rise in the PSEi.
Substantial acquisition drives trading halt
PhilWeb and its subsidiary PhilWeb Capital agreed to invest a combined 4.23 billion pesos in JKS Tech Solutions, a provider of digital infrastructure for licensed gaming operators. PhilWeb will subscribe to 3.41 million JKS shares at 394 pesos each, totaling 1.34 billion pesos. PhilWeb Capital will buy 7.32 million shares for 2.88 billion pesos. This gives the PhilWeb group a 30% stake in JKS.
The PSE suspended trading on September 8 after classifying the deal as a substantial acquisition. This classification applies when a listed company invests at least 10% of its book value in an unlisted company. Trading resumed on September 10 after PhilWeb submitted the required disclosures. JKS is listed as the gaming system administrator for the Epic Game brand by the Philippine Amusement and Gaming Corp.
Treasury share sale funds new stakes
JKS plans to acquire 81.38 million PhilWeb treasury shares at 16.50 pesos each for approximately 1.34 billion pesos. The transaction will be completed in two stages. PhilWeb intends to use the proceeds to subscribe to the new JKS shares. The company stated that selling the treasury shares would also strengthen its equity position.
Investors focus on digital infrastructure shift
According to reporting from GN stocks/shares-surge, the JKS transaction is the key development for PhilWeb this week. It provides a clearer view of the company's shift toward technology and digital infrastructure. The investment gives PhilWeb exposure to this sector, distinct from larger gaming firms that focus on core operations. Investors are watching whether this stake contributes to PhilWeb's earnings and growth over time.
