Macau-based firm may inject $20M in DFNN

BusinessMirror Written by Miguel R. Camus

COWSON Holdings Ltd., a Macau-based engineering and consulting firm, may invest up to $20 million on listed technology company Diversified Financial Network Inc. (DFNN), a filing to the local stock exchange showed on Monday.

 

Outlining details from a nonbinding term sheet, DFNN said a portion of the buy-in proceeds will be used to acquire an undisclosed stake in Kirschner Games International Inc. The latter is a Philippine-registered company which supplies technologies and systems for use in the Philippine Amusement and Gaming Corp.’s operations.

To support this purchase, Cowson Holdings will invest a maximum of $3 million to buy primary shares in DFNN at the agreed price of P25 per share. This values the shares at more than double DFNN’s closing price of P10.25 apiece yesterday.

Another $7 million has been committed by Cowson to fund operations of Kirschner Games, as it develops its gaming provision and technology business.

On top of this, Cowson plans to spend a “minimum” of $3 million to buy DFNN shares in the open market “with the view of acquiring a board seat.”

Cowson also will also have an option to invest a further $7 million on DFNN subsidiary Pacific Gaming Investments Pte. Ltd.

“Cowson has been given a period of 45 days from the execution of the term sheet within which to complete its due diligence,” said DFNN in the disclosure.

“During the same period DFNN, Cowson and Kirschner Games shall negotiate the terms of more definitive agreements,” added the company. Read more...