PLDT shelves plans to buy GMA 7 stake

Philippine Long Distance Telephone Co. (PLDT) has shelved for a third time plans to acquire a stake in GMA Network Inc., which operates one of the country’s biggest television networks, its top official said.

The offer of PLDT, which already owns third-ranked TV5, to acquire a 34-percent stake in GMA Network expired in early February, PLDT chair Manuel V. Pangilinan said Tuesday.

“There are no discussions ongoing at the moment for a variety of reasons,” Pangilinan said, referring to previously disclosed talks with the Duavit, Gozon and Jimenez families who own a controlling stake in GMA Network.

“No news, we don’t know what’s going on,” he added.

GMA Network officials did not immediately respond for comment although Inquirer sources said the network had been in discussions with other suitors.

The Inquirer reported in January that businessman Ramon S. Ang, president of San Miguel Corp., has offered—in his personal capacity—to acquire a 30-percent stake in GMA, sources with knowledge of the matter said.

No deal was closed at the time although it was suggested that the shareholders were satisfied with Ang’s offer.

Sources said Ang had offered to acquire the stake at P10.80 a share, then at a 27-percent premium to GMA Network’s market value.

The sources said Pangilinan had offered about P9.50 per share. GMA Network shares rose 0.15 percent to P8.50 per share Tuesday.

Another source said Ayala-led Globe Telecom Inc. was also interested in GMA Network, which mainly competes with Lopez-led ABS-CBN Corp. for television ratings.

PLDT, through Mediaquest Holdings Inc., sought to acquire GMA Network two years ago but the deal fell through partly due to regulatory risks.

At the time, the company’s enterprise value was estimated at around P52.5 billion, as this includes factors outside its market capitalization, like preferred shares.

PLDT  has been seeking to expand its footprint in the media content space, in line with a convergence strategy it believes is the business model of the future.

Apart from TV networks, it owns satellite TV operator Cignal Digital TV.

The group also owns a controlling stake in BusinessWorld, the country’s oldest business newspaper, and minority stakes in newspapers Philippine Star and Philippine Daily Inquirer.