Prieto family on track to divest stake in Inquirer group to Ramon Ang

The Prieto family on Monday confirmed it was in talks with business mogul Ramon S. Ang on the divestment of a majority stake in the Inquirer Group of Companies, with the due diligence to begin "soon."

"The Chair of the Inquirer Group of Companies, Marixi Prieto, confirmed today that she has resumed discussions with longstanding friend and business partner Ramon S. Ang for the sale of the Prieto family's interest and majority share in the Inquirer Group," the Inquirer said in a statement posted on its Twitter account.

"The due diligence review on the Inquirer Group will be undertaken soon by Mr. Ang," the statement added.

In a separate report, Reuters noted that Ang, the Philippines' 16th richest man according to Forbes Magazine, said he will start due diligence to buy the Prieto family's stake in the group, which also owns tabloid newspapers and a radio station.

"I am looking forward to being part of this venerable institution," Ang said in a statement. "The publication will continue to uphold the highest journalistic standards and make a difference in the society it serves," according to  Reuters.

Talks between the two parties began in 2014, and were restarted early this year after the Prieto family completed its annual review of business plans, the Inquirer group said.

"The Prieto family's decision to divest after 25 years is a strategic business decision that it believes will maximize growth opportunities for the Inquirer Group," it said.

"The family is confident that Mr. Ang will uphold the Inquirer Group's commitment to pursuing the highest standards of journalism," it added.

The Inquirer clarified that all employment contracts will remain in effect.

"Both parties acknowledge that the multi-media organization is where it is today because of the caliber of its people, dedicated to the continuing vision and mission of empowering Filipinos by telling their stories," it said.

Ramon S. Ang currently serves as president and chief operating officer of diversified conglomerate San Miguel Corp., and president and chief executive officer of Petron Corp., among other corporate concerns.

"The Philippine Daily Inquirer is among the country's top three newspapers by circulation. Its coverage of the government's war on drugs, which has resulted in thousands of deaths, has brought the newspaper repeated complaints from President Rodrigo Duterte over perceived bias," Reuters said.

"Duterte has on numerous occasions also publicly accused the newspaper's owners of tax evasion. The newspaper has rejected accusations of bias. Neither the newspaper nor its owners have responded to Duterte's comments on tax," it added.

Jay Bautista, managing director of consultancy Kantar Media Philippines, said buying the Inquirer group could lead to lower advertising and marketing costs for San Miguel, according to Reuters. — With a report by Reuters/VDS/KVD, GMA News