Pacific Online backs out of HHRPI investment citing gov’t policy – BusinessWorld Online
PACIFIC ONLINE Systems Corp. (LOTO) said it is unwinding its investment in HHR Philippines, Inc. (HHRPI) after the national government adopted a firm policy against licensing online betting platforms.
Pacific Online, a publicly listed company engaged in providing lottery systems and related technology services, said the move was in response to the government’s policy direction.
“Because of the firm policy adopted by the national government against the licensing of online betting platforms, please be advised that the Company and HHRPI have mutually agreed to revisit their investment arrangement and unwind the same, with a private third party investor agreeing to assume the rights and obligations of the Company from its HHRPI investment,” Pacific Online said in a disclosure on Thursday.
HHRPI operates Buenas PH, a licensed e-casino platform.
Pacific Online said it expects to cease being a shareholder of record in HHRPI upon securing the necessary regulatory clearances.
“As HHRPI is still in early operation stage, the unwinding of LOTO’s investment in the company is not expected to have any significant impact on LOTO’s financials,” it said. — A.G.C. Magno