Philweb tender offer exemption sought
BUSINESSMAN Gregorio “Greggy” Ma. Araneta III is seeking exemption on the requirement to make a tender offer ahead of the consummation of a deal to buy out company founder Roberto V. Ongpin’s 53.76 percent stake in gaming technology provider Philweb Corp. from
In a disclosure to the Philippine Stock Exchange on Friday, Philweb said the parties were now in the process of seeking approval from the Securities and Exchange Commission (SEC) for an exemption from the requirement that the tender offer to the stockholders of PhilWeb be first concluded before the special block sale is approved by the PSE.
“The parties shall apply for approval of the block sale from the PSE as soon as the SEC grants the said exemption,” the disclosure said.
The P2-billion deal involves the sale of Ongpin’s 771.65 million shares in Philweb at a price of P2.60 per share.
The exemption sought is just on the timing of the tender offer as after the block sale, Araneta is seen keen on making the tender offer to minority shareholders.
Tender offer is a mechanism which gives minority shareholders the opportunity to exit when there’s a change in shareholder control. The new investor is required to offer to buy out minority shareholders at the same price that the controlling shareholder group is selling out.