PhilWeb Corp has verified the management takeover after the buyout has transformed the ownership and the boardroom. Following a share transfer, Crisanto Roy Alcid via Nexora Holdings Inc has become the beneficial owner thus marking the end of the transition from Gregorio Araneta Inc and the beginning of a management-led new era.
The change in ownership was initially reported by PhilWeb in October when it became known that Gregorio Araneta Inc was going to sell its entire stake in the corporation. The 829.57 million shares were sold at a price of PHP 2.17 per share, which amounted to a total of PHP 1.80 billion (around USD 30.9 million).
Nexora Holdings Inc and Velora Holdings Inc, which are both Philippine-based companies, were the buyers, and the deal was made in two separate transactions instead of one. In the first transaction, just over 488.16 million shares, representing 34 percent of the total PhilWeb shares, were sold to Nexora. The rest of the 341.41 million shares, which is close to 23.8 percent, will be divided between Nexora and Velora.
Following the share transfer in February, PhilWeb disclosed that Alcid through Nexora is now the beneficial owner and that management is gaining control.
Board Reshuffle and Mandatory Tender Offer Finalize Phil Web’s Ownership Transition
The takeover led to drastic changes in the board as well as the top management. In late December, Alcid was chosen as the chairman of PhilWeb following his role as vice chairman and director, with Gregorio Araneta III stepping down. Araneta, who had been the chairman of PhilWeb since 2016, officially handed over the company to the new management-led group.
Internal documents suggest that Alcid also serves as a director and treasurer of Nexora, indicating that the holding company is the main link between the leadership of PhilWeb and Nexora. Edgar Brian Ng, who is the president and director of PhilWeb and its subsidiaries, holds the same positions at Nexora as president, chairman, and director. A number of other PhilWeb directors departed in December and were replaced by new investor group appointees, thus finalizing the board shakeup.
The new investors were required under the Philippine securities law to make a mandatory tender offer to PhilWeb shareholders as a result of the change of control in February. Shareholders were given an option to sell their shares at the price offered; however, PhilWeb informed in their report that no shares were tendered which means that the statement reveals that the other shareholders decided to continue holding their shares.
The newly restructured Nexora and Velora-led firm is fully operational after the completion of the tender offer and the transfer of all tranches. Management-led buyout will probably make it easier for the board of directors to execute their decisions since it aligns PhilWeb’s strategic and operational leaders with the main shareholders.
PhilWeb Expands Philippine Online Gaming Presence Through FBM and Hann Online Partnerships
Aside from the ownership change, PhilWeb is also actively exploring its footprint in the Philippine online gaming market. It signed a strategic service agreement last month with FBM, a casino slot, and electronic bingo expert, through which PhilWeb will provide FBM Philippines with its online gaming technology and operations as a partner in technology and services.
Moreover, at the start of this year, PhilWeb signed an agreement to “operate and manage” Hann Casino Resort’s online platform, Hann Online, which was opened in February. Except for the FBM agreement, the company’s partnerships are a clear indication of how the freshly restructured firm is continuing to increase its influence in online gaming as its management-led ownership and leadership gradually take place.
