Ramon Ang on minority stake in GMA Network: ‘It’s a done deal’

By DANESSA O. RIVERA, GMA News

Published June 24, 2014 10:16am

(Updated 3:04 p.m.) Major shareholders of GMA Network Inc. have agreed to sell a minority stake of the broadcast company to San Miguel President and Chief Operating Officer Ramon Ang.

It's a "done deal," Ang said in a text message to GMA News Online Tuesday.

GMA Network confirmed the agreement in a disclosure to the Philippine Stock Exchange on Tuesday.

The deal is "subject to the final terms and conditions of the share purchase documents which the parties are presently negotiating," the company said.

GMA Network added that it will issue an appropriate disclosure "upon execution of the relevant definitive agreements by the parties for the transaction."

In a separate statement, GMA Network confirmed the the disclosure.

"GMA Network’s major stockholders have agreed to sell to Mr. Ramon S. Ang a participating minority equity interest in the Company’s outstanding capital stock," the statement read.

GMA Chairman and CEO Felipe L. Gozon said, “What we can confirm right now is that the Jimenez, Gozon and Duavit groups of stockholders have decided to sell a minority stake to Mr. Ramon Ang. Details of the transaction will be disclosed once we have finalized everything.”

According to a Reuters report, shares of GMA subsequently gained as much as 14 percent before the noon break. The shares were up 4.3 percent compared with a 0.3 percent rise in the broader market.

"It will all boil down to the price," the news service reported, quoting Lexter Azurin, head of equity research at Unicapital Securities. "The speculation is that the price would be at a premium."

Ang had offered to buy at least 30 percent of GMA from majority shareholders at a premium or P10.80 a share, Reuters said, citing a Philippine Daily Inquirer report in January quoting sources familiar with the deal.

On Tuesday, Astro del Castillo, First Grade Holdings Inc. managing director, said the Ang-GMA deals is a “win-win” situation for both parties.

GMA is getting the best of Ang’s business instinct and Ang’s business would benefit from the transaction, he said.

“Ang has an eye for a jewel and good investments. It is an attractive investment, given it is in broadcast media while GMA shareholders were willing to part ways at a certain price,” Del Castillo added.

Last May 21, GMA Network chairman and CEO Felipe L. Gozon said talks with Ang were "progressing smoothly" and the San Miguel official will bring his business expertise into the broadcast company.

On May 5, Gozon confirmed talks with Ang have started in January, saying the San Miguel official "is very, very interested" in buying into the broadcast media company.

The confirmation came three months after businessman Manuel V. Pangilinan's offer to buy a minority stake in GMA Network lapsed.

Last March, Pangilinan, chairman of the Philippine Long Distance Telephone Company, said the offer to buy a 34-percent stake in GMA Network lapsed in February and was not extended. —KG/VS, GMA News

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Tags: gmanetworkinc, ramonang