Ang eyes partners for GMA7
Businessman Ramon S. Ang said he was open to taking partners in his bid for a minority stake in television broadcast firm GMA Network Inc., but noted that he would currently make an offer without any other party.
Ang, who sits as president of conglomerate San Miguel Corp.—but is making the investment in his personal capacity—said he would invite another group to co-invest in GMA once the deal is closed.
He said on Monday that he was still in talks to acquire a stake from the Duavit, Gozon, and Jimenez families that own the country’s second largest broadcast network.
The discussions were confirmed by Ang and Felipe Gozon, who sits as GMA chair and CEO, two weeks ago.
Neither group offered any details as talks were covered by the customary confidentiality agreement. But Gozon confirmed that talks with Ang started early this year.
Ang’s offer to GMA’s shareholders was higher than that of Philippine Long Distance Telephone Co., sources with knowledge of the matter said in January. Two sources said Ang at the time offered P10.80 per share, then at a 27 percent premium, against about P9.50 per share offered by PLDT.
PLDT, which already owns third-ranked TV5, has long sought a foothold in GMA as part of its media diversification strategy.
PLDT chair Manuel V. Pangilinan said their offer expired in early February, marking the third time talks with GMA failed. Pangilinan said last May 5 that PLDT had no current plans to revive their offer.
The deal is not likely to cause any major price reaction given that talks involved a reported 30 percent, which is below the 35 percent threshold which would require a tender offer to minority stockholders, analysts had earlier said.
Should a deal push through, Ang would be taking a stake in one of two major television broadcast firms.
The network, however, has been facing increased costs and profits slowed in the first quarter, partly due to the absence of the election-related boost in the same period in 2013.
GMA reported a 46 percent decline in first quarter net income to P325 million while airtime revenues dipped 5 percent to P2.54 billion.
Gozon said in a recent briefing that they were taking steps to curb costs.
