PhilWeb seeks SEC OK of Araneta block sale

MANILA, Philippines – PhilWeb Corp. is appealing to the Securities and Exchange Commission (SEC) to allow the special block sale of businessman Roberto Ongpin’s shares in the company to Gregorio Araneta Inc. (GAI) ahead of a mandatory tender offer to minority shareholders.

Ongpin is selling his entire 771.65 million shares in PhilWeb, equivalent to 53.76 percent, to Araneta at a price of P2.60 per share or a total of P2.006 billion.

The first tranche of 653.15 million shares will completed through a special block sale and for approval by the Philippine Stock Exchange (PSE) while the second tranche will comprise 118. 5 million shares.

The second tranche is scheduled as soon as the registration of these shares at the PSE is completed and will be transacted at the same price as the special block sale for the first tranche.

“GAI is perfectly willing to do the tender offer, but it is in everyone’s interest to have the special block sale proceed now instead of after the mandatory tender offer, because requiring the tender offer to be done first would only delay Ongpin’s exit from the company by at least another month,” said PhilWeb president Dennis Valdes.

The concern is that any further delay in Ongpin’s exit from the company may delay its discussions with the Philippine Amusement and Gaming Corp. (Pagcor) regarding the reissuance of its license, Valdes said.

“This would further damage the network of e-Games operators and the 5,000 employees of that network, which has been shut down for two months now,” he added.

With the divestment of Ongpin, the new management of PhilWeb will now reapply for the continuation of its license with Pagcor for its nationwide network of e-Games cafes.

e-Games are internet cafes exclusively dedicated to casino games. With technology provided by PhilWeb, patrons can choose from more than 300 casino games, including baccarat, blackjack, various slot machine games, video poker and sports betting.