Ongpin sells PhilWeb stake to Araneta

PhilWeb Corp. on Wednesday confirmed businessman Roberto V. Ongpin has sold his controlling stake in the company to its current Chairman Gregorio Ma. Araneta III for P2.006 billion.

"Yes, Mister Ongpin disclosed today that he has divested all his shares to Mr. Gregorio Araneta III," PhilWeb President Dennis Valdes said in a phone interview.

In a disclosure on the local stock exchange, R.G Manabat & Co., Ongpin's financial advisor, said Ongpin sold his 771,651,896 shares or 53.76 percent of PhilWeb to Gregorio Araneta Inc. at P2.60 per share. The total consideration amounted to P2,006,294,929.60.

The transaction covering the first tranche or 653,151,896 shares will be completed via a special block sale for approval by the Philippine Stock Exchange (PSE).

The second tranche of 118,500,000 shares, consisting of partially paid shares – that are now fully paid – still needs to be registered for listing on the exchange.

"After the divestment by the RVO Group of Companies of its stake in PhilWeb is concluded today, and after his resignation from PhilWeb in early August, Ongpin will have no further involvement with PhilWeb," the listed online gaming technology provider said.

In August, Ongpin announced plans to sell his stake in PhilWeb equivalent to 53.76 percent of the total shares outstanding, in an effort to save the company after President Rodrigo Duterte tagged him as one of the oligarchs – with undue influence on the government – that must be destroyed.

Araneta was elected as chairman and director of the company on September 9, replacing Ongpin who resigned on August 4.

Prior to the transaction, Araneta was the second-largest shareholder of the company – next to Ongpin –with 100 direct shares and 13.043 million shares through real estate firm Gregorio Araneta Inc. of which he is the chairman.

The transaction may be finalized within a month or so when all the shares will be listed on the exchange.

PhilWeb Corp. failed to renew its licensing agreement with the Philippine Amusement and Gaming Corp. (PAGCOR). Its license lapsed on August 10.

Moving forward, PhilWeb says it is now looking at other revenue streams.

"We've already disclosed that we're studying new business offerings that PAGCOR has made public. We'll meet with PAGCOR again and introduce Mr. Araneta to them," Valdes said.

"I'm very confident in the future of PhilWeb. I always have been irrespective of the owners," he added.

PhilWeb shares gained P0.340 or 5.78 percent to close at P6.22 on Wednesday from P5.88 on Tuesday. — VDS, GMA News