Tuesday, October 16, 2012

Berjaya gets P1.2B windfall from lotto

Berjaya gets P1.2B windfall from lotto

Malaya Business News Online - Philippine Business News | Online News Philippines
By A Web design Company

Berjaya Corp., is taking a P1.2 billion windfall from its lotto operation in the Philippines.

Its wholly owned unit, Philippine Gaming Management Corp., (PGMC) has declared a cash dividend equivalent to the same amount which will be paid to “all stockholders of record as of 10 September 2012 from its unrestricted retained earnings.”

Given that PGMC is a wholly-owned subsidiary, all of the dividend falls into the lap of Malaysian-controlled Berjaya. Berjaya is majority-owned by Malaysia-based Berjaya Group of companies.

The dividend issuance come at the dawn of an impending duel between Berjaya’s PGMC and the Philippine Charity Sweepstakes Office (PCSO) for the latter’s equipment leasing business in the Luzon area PCSO’s lotto operation.

PGMC recently won an injunction against PCSO after the latter entered into a new contract for the lease of new lotto machines outside the exclusive equipment lease agreement (ELA) PCSO signed with PGMC in 2007. PGMC was calling for PCSO board of directors to be cited in-contempt for the new contract.

“Resolution 445 technically indicated that a public bidding for the operation of the On-Line Lottery Sustem was conducted and that the same was awarded only to one bidder, and that is PGMC. It is bolstered by the approval and execution of the ELA and the amended ELA, where it clearly states that PGMC  has exclusive lease rights over the online lottery equipments and software support of PCSO in Luzon,” said the order penned by Branch 143 acting president judge Rommel O. Baybay.

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