PHILIPPINES E-GAMBLING MOGUL SELLS OFF REMAINING INTEREST IN PHILWEB
Fire sale pricing on 53.76 percent stake of company.
The damaging effects of Philippines president Rodrigo Duterte's attacks on e-gaming technology group Philweb and main shareholder Roberto Ongpin were again in evidence this week as former chairman Ongpin sold his 53.76 percent stake in the company to its new chairman, Gregorio Araneta, for just P2 billion (US$41.4 million).
Ongpin's fire sale after attempting unsuccessfully to offload the shares to Pagcor saw the 771.65 million shares priced at P2.60 per share, a 58 percent discount on Wednesday’s closing price.
KPMG professional business services announced that the transaction will be implemented in two tranches, with the first tranche of 653.15 million being completed on Wednesday through a special block sale at the Philippine Stock Exchange; and the second tranche consisting of 118.5 million shares will be completed as soon as they are registered at the PSE.
Following the divestment, Philweb said that Ongpin would have no further involvement with the company.
“With the divestment of Ongpin, the new management of PhilWeb will now reapply for the continuation of its license with the Philippine Amusement & Gaming Corp. for its nationwide network of eGames cafes,” a Philweb statement announced.