Philweb shares up, but Pagcor turns down Ongpin offer

Shares of gaming technology service provider Philweb Corp. rose by 35.38 percent on Thursday following businessman Roberto V.  Ongpin’s offer to donate a 49-percent stake to state-owned Philippine Amusement and Gaming Corp. (Pagcor).

After the market’s close, however, Pagcor Chair Andrea Domingo announced the state gaming agency would not be accepting Ongpin’s donation.

Philweb shares closed at P8.80 yesterday from P6.50 the day before, giving the company a market capitalization of P12.56 billion.  It was among the most actively traded stocks on the local bourse on Thursday.

Ongpin had said his donation was “a final attempt to save the jobs of about 700 Philweb employees plus about 5,000 others employed by the Pagcor operators in 286 e-Games sites.”

“The idea before was that Philweb no longer has value, but if Pagcor would get it then it would mean there would be business continuity,” said Manny Cruz, chief strategist at Asiasec Equities Inc.

“If we are to accept that there are five bidders for the stake for sale, then there is a pretty good risk return trade-off. If Pagcor accepts, then business as usual would support a recovery in valuations,” according to ATR Asset Management head of research Jose Mari Lacson.