THE move for bidding out the majority shares that Robert V. Ongpin holds in PhilWeb Corp has to go through a mandatory tender offer, the Securities and Exchange Commission (SEC) said.
PhilWeb effectively ceased operations by 11:59 a.m. on August 10 following the expiration of its contract with Philippine Amusement and Gaming Corp. (Pagcor). Ongpin initiated a bidding process that day, which will end tomorrow (Aug 17), for unloading a total of 771.749 million shares that account for 53.76 percent of the company’s outstanding shares.
“The shares being sold would be sufficient to gain control of Philweb. Hence, a mandatory tender offer MAY be triggered if one person or a group of persons acting in concert would acquire the auctioned shares,” said the SEC.
Under the 2015 implementing rules and regulations of the Securities Regulation Code, a mandatory tender offer is to be conducted when a person or group of persons intends to acquire at least 35 percent equity in a publicly listed company within a period of 12 months.
The code states that any acquisition of over 50 percent ownership in a listed company will be required to conduct a tender offer.
Ongpin earlier said that the winning bidder has the option to withdraw their bid “if they or their associates are unable to obtain a renewal of the PhilWeb license to operate on or before August 31.”
PhilWeb President Dennis Valdes earlier said there is an estimated loss of P15 million to P16 million revenues per day with foregone operations of e-Games outlets. Pagcor takes up 40.2 percent of gaming revenues from e-Games operations, while 28 percent goes to operators, 2 percent for marketers, and only 29 percent to PhilWeb.