All minority shareholders of PhilWeb Corp. snubbed the tender offer of the company’s new majority shareholders led by businessman Gregorio Araneta III because of the steep discount.
No shares were tendered during the offering period from May 17 to June 28, according to a filing by PhilWeb with the Philippine Stock Exchange.
Gregorio Araneta Inc. made the tender offer after acquiring a majority stake in PhilWeb following the divestment of businessman and former trade minister Roberto Ongpin.
GAI offered to acquire the remaining 663.803 million common shares of PhilWeb held by the public at P2.60 per share. The offer price was based on GAI’s acquisition price when it bought Ongpin’s shares in PhilWeb.
The P2.60 per share tender offer price, however, was a steep discount to the stock’s Monday’s closing price of P11.
GAI owns 771,651 million common shares, or equivalent to a 53.76-percent stake, in PhilWeb.
GAI is a company that founded in 1931 to manage the business interests of renowned lawyer Don Gregorio Araneta. The company is headed by the founder’s grandson and namesake, Gregorio Araneta III.
It is a holding company engaged in real estate, transportation, telecommunications, security and protection services, environmental protection and other businesses.
Its projects include the largest solar energy farm in the country, a 132.5-megawatt facility in Cadiz, Negros Occidental, a joint venture with the solar energy firm Soleq.
Araneta earlier said he would rebuild PhilWeb’s revenues by renewing efforts in the gaming services and increasing its focus in other areas of gaming.
Ongpin, who was tagged as a oligarch by President Rodrigo Duterte, decided to divest from PhilWeb after state-owned Philippine Amusement and Gaming Corp. rejected all his offers in exchange for the renewal of the company’s gaming license.
PhilWeb’s gaming license expired on Aug. 10, resulting in the closure of 286 operating e-Games cafes across the country, majority of which are owned and operated by independent operators.
Ongpin last month sold 118.5 million shares in PhilWeb to GAI for P2.60 per share to complete his divestment. The transaction represented the second and final tranche of the sale of Ongpin’s full holdings to GAI.
“The two transactions selling Mr. Ongpin’s shares to GAI mark the culmination of the exit of Mr. Ongpin from the company, a process started last August 4, 2016 when he resigned as chairman, continued as he negotiated a sale of his entire shareholdings in the company to Mr. Araneta, and which were concluded today with the completion of the second and final tranche of the sale,” PhilWeb said.
