Ongpin sells Philweb stake to Araneta
Embattled businessman Roberto V. Ongpin has sold his 53.76-percent stake in gaming technology provider Philweb Corp. to Gregorio Ma. Araneta III for P2 billion.
The sale was announced Wednesday by KPMG (R. G. Manabat & Co.), Ongpin’s financial adviser on the transaction.
The deal involves the sale of 771.65 million shares of Philweb priced at P2.60 a share, marking a 58-percent discount from Wednesday’s closing price of P6.22 a share.
Araneta—son-in-law of the late strongman Ferdinand Marcos and a board member in the last two years—agreed to buy the shares through holding firm Gregorio Araneta Inc.
Ahead of this buyout deal, Araneta was named the new chair of Philweb following Ongpin’s resignation.
Prior to this deal, Araneta was the second largest individual shareholder of Philweb.
In addition to his investment in the company, Araneta has interests in property development and energy.
In accordance with the sale and purchase agreement concluded Wednesday, the transaction will be implemented in two tranches:
The first tranche of 653.15 million was completed on Wednesday through a special block sale at the Philippine Stock Exchange (PSE); and
The second tranche consisting of 118.5 million shares consisting of partially paid shares—now fully paid but needs to be registered for listing at the PSE—will be completed as soon as shares are registered at the PSE.
Both tranches will be transacted at P2.60 a share.
After his divestment, Philweb said its former chair Ongpin—who had been named by President Duterte as an “oligarch” whom he would bring down—would have no further involvement with the company.
“With the divestment of Ongpin, the new management of Philweb will now reapply for the continuation of its license with Pagcor (Philippine Amusement and Gaming Corp.) for its nationwide network of e-games cafes,” the company said.
After resigning as chair of Philweb and making several offers to Pagcor—all of which had been either rejected or ignored—Ongpin said it became obvious to him that while he remained a shareholder of Philweb, there was no chance that Philweb would get a break from Pagcor.
Dennis Valdes, meanwhile, stays president of Philweb.
Asked whether the deal carried any conditions, Valdes said: “No conditions. I believe Mr. Araneta is confident that Philweb can become a profitable business once again.”
Araneta is also chair and chief executive officer of publicly listed property developer Araneta Properties, a position he has held since 2010.
He is also chair and president of the following companies: Gregorio Araneta Inc., ARAZA Resources Corp., HE Heacocks Resources Corp., Gregorio Araneta Management Corp., Gamma Properties Inc. and Carmel Development Inc.
