Philippines-listed gaming technology provider PhilWeb Corp announced on Thursday that its majority shareholder, Gregorio Araneta Inc, has signed an agreement to sell its entire stake in PhilWeb for a total consideration of PHP1.80 billion (US$31.0 million), equivalent to 829.57 million common shares at PHP2.17 apiece.
The buyers were identified as Philippines-based Nexora Holdings Inc and Velora Holdings Inc. Both firms were described in PhilWeb’s disclosure as domestic holding companies that are not engaged in securities brokering.
The suitors are now required to conduct a mandatory tender offer to all remaining shareholders as the acquisition involves control of more than 35 percent of the outstanding voting shares of PhilWeb, as per the announcement.
Trading in the shares of PhilWeb in the Philippine Stock Exchange was temporarily suspended on Thursday morning.
Gregorio Araneta Inc is controlled by businessman Gregorio Araneta III, the brother-in-law of the Philippine leader, President Ferdinand Marcos Jr. The deal marks Mr Araneta’s exit from the gaming technology firm he had acquired in 2016.
According to Thursday’s filing, Edgar Brian Ng, who serves as president and director of PhilWeb and its subsidiaries, is also president, chairman and a director of Nexora.
In early September, the firm said Mr Ng would be resigning on September 30 as president and as a member of the board of PhilWeb. That decision was eventually recalled at the end of last month.
Crisanto Roy Alcid, current PhilWeb vice chairman and director, is also a director and the treasurer at Nexora, as per the update.
As part of the deal, certain of PhilWeb’s incumbent directors will step down and “be replaced” by representatives of the buyers, “subject to qualifications and compliance with the applicable law”.
