Ongpin sells Philweb stake to Araneta for P2B

BUSINESSMAN Roberto V. Ongpin has sold his 53.76 percent stake in gaming technology provider Philweb Corp. to Gregorio Araneta for P2 billion.

The sale was announced on Wednesday by KPMG (R. G. Manabat & Co.), which has been retained by Ongpin as financial advisor on the transaction. The deal involved 771.65 million shares of Philweb priced at P2.60 per share, marking a 58 percent discount to Wednesday’s closing price of P6.22 per share.

Ahead of this deal, Philweb had named Araneta its new chair following Ongpin’s resignation.

In accordance with the sale and purchase agreement concluded today between the two entities, 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; 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 the same price per share of P2.60 per share.

After his divestment, Philweb said its former chair Ongpin would have no further involvement with PhilWeb.

“With the divestment of Ongpin, the new management of PhilWeb will now reapply for the continuation of its license with PAGCOR (Philippine Amusement & Gaming Corp.) for its nationwide network of eGames cafes,” the company said.

Dennis Valdes will remain as president of Philweb.