MANILA, Philippines – Roberto Ongpin – the businessman President Rodrigo Duterte publicly threatened to destroy – sold his entire 53.76% stake in gaming firm PhilWeb Corporation to businessman Gregorio “Greggy” Araneta III for P2 billion.
This came after the state-owned Philippine Amusement and Gaming Corporation (Pagcor) rejected and ignored PhilWeb’s proposals to renew its license. (READ: Uncertainty hounds online gaming in the Philippines)
PhilWeb told the Philippine Stock Exchange (PSE) on Wednesday, October 5, that RVO Group of Companies concluded a sale and purchase agreement with Gregorio Araneta Incorporated.
Araneta is married to late dictator Ferdinand Marcos’ daughter, Irene Marcos-Ma. Araneta.
Ongpin’s agreement with Araneta involves 771,651,896 million shares, priced at P2.60 apiece.
This is a big discount to PhilWeb shares’ closing price of P6.22 each.
PhilWeb told the local bourse that the transaction involves two tranches.
The first tranche of 653,151,896 shares will be completed through a special block sale and for approval by the PSE; while the remaining 118,500,000 shares, which are fully paid, will be registered for listing at the local bourse.
With the divestment of Ongpin, the new management of PhilWeb will apply anew for the renewal of its license with Pagcor to operate eGames cafes. (READ: Ongpin to sell his entire 53.76% stake in PhilWeb)
“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 gaming firm disclosed.
“Mr. Gregorio Ma. Araneta III has been elected as chairman, and Mr. Dennis O. Valdes will remain as president,” it added.
Ongpin had announced plans to sell his entire stake in PhilWeb after Pagcor rejected all his offers just to have PhilWeb’s license renewed.
PhilWeb’s gaming license expired last August 10, resulting in the closure of its 286 operating e-Games cafes. – Rappler.com