June 13, 2014

BEL subscribes to 24.7b SINO shares at P0.369/sh

In a disclosure to the Exchange, Belle Corp (BEL) today followed through with the subscription of 24.7b common shares of SinophilInc (SINO) at P0.369/sh for a total subscription price of P9.11b. This will bring BEL and its affiliates’ ownership in SINO to 89.52% from 56.85% previously.

Our take: BEL’s subscription of additional SINO shares is in-line with previous disclosures of its intent to make SINO a pure gaming play. The infusion of cash erases SINO’s deficits and paves the way for the injection of BEL’s gaming assets.

With the additional subscription and increase in authorized capital, SINO will have total outstanding shares of 32.6b of which 10.48% is in public hands. This leaves the company with about 5b in unissued commonshares which it could place in the future should the need arise.– WealthSec