Gregorio Araneta Sells Majority Sngake in PhilWeb

In its disclosure to the Philippine Stock Exchange, PhilWeb said the transaction covers 829.57 million common sharesImage Source: Shutterstock.com

Gregorio Ma. Araneta III’s investment company, Gregorio Araneta Inc., has completed the sale of its controlling 57% share in PhilWeb Corp. The buyers, two local holding companies named Nexora Holdings,Inc. and Velora Holdings,Inc., paid a total of PHP 1.8 billion ($30.9 million) for the sngake. This deal signals Araneta’s complete departure from the gaming technology company he acquired almost ten years ago.

PSE Suspends PhilWeb Trading Following Sale of 57% Sngake to Nexora and Velora

In a statement to the Philippine Stock Exchange (PSE), PhilWebreported that the deal involves 829.57 million common shares priced at PHP 2.17 ($0.037) each. Nexoraand Velora, both local companies, were set up to buy and handle investments in securities and other assets. PhilWebmade it clear that the buyers do not solicit investments or manage funds for others.

The PSEstopped trading PhilWeb’s stockfor an hour on Thursday morning after the announcement. This gave investors time to think about how the deal might affect things. When trading started again, PhilWeb’s share price droppedby more than 20%, ending at PHP 4.06 ($0.070) per share.

According to the Securities Regulation Codewhen someone buys over 35% of a listed company’s voting shares, they must make a mandatory tender offer to the other shareholders. PhilWebexpects the buyers to follow this rule within the given timeframe. This tender offer might change the company’s public float and boost its foreign ownership from 4.9% to as much as 40%. However, PhilWebdoes not own any land, so the company says it will still meet foreign ownership limits.

Leadership Transition at PhilWeb Signals Fresh Direction After Araneta Sale

The sale also marks a shift in PhilWeb‘s management. Edgar Brian Ng, who heads Nexoraand holds the roles of president and director at PhilWeb, was named as one of the main purchasers in the transaction. PhilWeb‘s vice chairman and treasurer, Crisanto Roy Alcid,also has a role in Nexora,hinting at leadership stability despite the change in ownership.

Araneta‘s sale marks the end of his involvement with PhilWeb, a company he bought from the late businessman Roberto Ongpinin 2016 for around PHP 2 billion ($34 million). This purchase happened right after the Dutertegovernment canceled PhilWeb’s gaming licenseas part of its efforts to crack down on what it called “oligarchic” control.

When Aranetastepped in, people saw it as a way to bring stability to the company and get its operations back on track under new ownership. Market experts see the deal as leading to a big change in structure or maybe a backdoor listing by one of the buyers, though neither has said this is their plan. For now, the sale shifts control of one of the nation’s first online gaming service companies from the President’s in-law to new owners ready to guide PhilWeb‘s next growth stage.