THE Araneta group on Wednesday acquired the stake of businessman Roberto Ongpin in online gambling firm Philweb, which will continue its deal with the Philippine Amusement and Gaming Corp. (Pagcor) to renew its license to operate a network of electronic-game stations nationwide.
Philweb said in its disclosure to the Philippine Stock Exchange that Gregorio Araneta Inc. bought Ongpin’s 53.76-percent share in the company for P2 billion.
Araneta bought all of Ongpin’s 771.65 million common shares in the company for P2.60 apiece, or a steep discount from its closing price on Wednesday at P6.22 per share.
The transaction for the first tranche of 653.15 million shares will be completed through a special block sale, upon approval by the Philippine Stock Exchange (PSE).
The second tranche will consist of 118.5 million shares to be registered for listing at the PSE. “This 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,” the company said. “After the divestment by the RVO Group of Companies of its stake in Philweb is concluded on Wednesday and after his resignation from Philweb in early August, Ongpin will have no further involvement with Philweb.” Gregorio Ma. Araneta III was recently appointed as chairman of the company, while Dennis Valdes will remain as president.
“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 eGames cafés,” the company said. Ongpin first offered to auction off his stake in Philweb, but then offered to donate it, instead, to Pagcor, which was declined by the state-owned firm.