GMA 7 confirms talks with SanMig’s Ang
The head of GMA Network Inc., one of the country’s biggest television broadcast firms, confirmed talks to sell a stake in the company to Ramon Ang.
Ang, who is president of San Miguel Corp. but made the proposal in his personal capacity, also confirmed discussions Monday.
GMA Network chair and CEO Felipe Gozon made the disclosure as the company reported a sharp drop in first quarter earnings Monday, mainly due to the absence of political ads, which bolstered advertising revenues last year.
“I will tell you this, we are talking. Beyond that, I am not at liberty to disclose details because this is covered by a confidentiality agreement. But we are talking to Ramon Ang,” said Gozon, adding that discussions on the equity acquisition started this year.
He declined to comment further when asked about the size of the stake, value and any closing conditions as well as Ang’s reasons for wanting to secure a foothold in GMA Network, which is jointly controlled by the Gozon, Duavit and Jimenez families.
“I don’t know why Mr. Ang is very interested in buying into GMA Network. I really don’t know,” Gozon added. “He is very, very interested.”
Ang confirmed his interested in a text message Monday, saying “yes, in talks.”
The Inquirer reported in late January that Ang had offered to buy a 30 percent stake in GMA Network for P10.80 per share, then at a 27-percent premium.
This was a week before Philippine Long Distance Telephone Co.’s offer “expired” in early February, PLDT chair Manuel V. Pangilinan told reporters on March 5.
PLDT had made at least three attempts to acquire GMA Network but talks failed each time.
GMA Network, meanwhile, reported a 46-percent decline in first quarter net income to P325 million, mainly from the absence on political-related advertisements and higher expenses. Airtime revenues dipped 5 percent to P2.54 billion.
Gozon said yesterday that efforts were being made to curb costs.
“At the moment, we are undertaking a cost reduction analysis of everything that we do in this company. The primary target of that reduction is on production costs,” Gozon said.
