Philippines-listed gaming technology provider PhilWeb Corp says its majority shareholder, Gregorio Araneta Inc, has signed an amended share purchase agreement regarding sale of the latter’s entire stake in PhilWeb. The transaction will now be effected in two tranches.
In October, PhilWeb announced that Gregorio Araneta Inc had agreed to sell its entire stake in PhilWeb for a total consideration of PHP1.80 billion (US$30.5 million currently), 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.
Edgar Brian Ng, who serves as president and director of PhilWeb and its subsidiaries, is also president, chairman and a director of Nexora.
According to PhilWeb’s latest filing, the sale should now be completed in two separate transactions.
In the first, just above 488.16 million shares, representing circa 34 percent of PhilWeb’s outstanding stock, will be transferred to Nexora.
The second tranche, comprising about 341.41 million shares and representing nearly 23.8 percent of PhilWeb’s outstanding stock, will be transferred to Nexora and Velora, as per the filing.
The suitors will be required to conduct a mandatory tender offer to all remaining shareholders prior to the completion of the transfer of the second tranche of shares, PhilWeb noted in its latest announcement.
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”.
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.
