JKS Tech Solutions Inc. has locked in its P2.88-billion investment in PhilWeb Corp. after signing a share purchase agreement covering 219.05 million shares, formalizing a strategic tie-up that will make it a significant shareholder of the gaming technology company.

In a disclosure on Monday, PhilWeb said PhilWeb Capital Corp. (PCC) agreed to sell JKS 157.04 million common shares and 62.01 million preferred shares.

The common shares are priced at P16.50 apiece for P2.59 billion, while the preferred shares are valued at P4.71 each for P292.06 million.

Upon completion of the transaction and including shares JKS previously acquired from PhilWeb, JKS is expected to hold approximately 14.22% of the company’s issued and outstanding shares.

The P2.88-billion transaction will be completed in two stages.

For the first closing, PCC will sell 10.92 million common shares to JKS for P180.21 million, subject to conditions including Philippine Stock Exchange approval of the block sale.

The second closing covers the remaining 146.12 million common shares and 62.01 million preferred shares for P2.70 billion. This will require, among others, Securities and Exchange Commission approval of JKS’s proposed increase in authorized capital stock and PSE approval of the block sale.

PhilWeb said the transaction “forms part of the strategic investment initiatives involving JKS.”

JKS is a Philippine business-to-business technology, platform and digital infrastructure company serving licensed mid-market operators in the digital entertainment sector.

PhilWeb said its business is complementary to the company’s existing ecosystem.

The transaction involves existing PhilWeb shares held by PCC, meaning no new shares will be issued and PhilWeb’s total issued and outstanding shares will not increase.