Ongpin donates 49% of Philweb to Pagcor
EMBATTLED businessman Roberto V. Ongpin has offered to donate a 49-percent stake in gaming technology service provider Philweb Corp.—a block cur-
rently valued by the market at around P5.3 billion—to the state-owned Philippine Amusement and Gaming Corp. (Pagcor) as a last-ditch attempt to save the jobs of thousands of people dependent on the nation- wide e-Games network.
But as any donation is contingent on the acceptance by the other party, the offer will still have to be scrutinized by the government. Pag-
cor Chair Andrea Domingo yesterday said the gaming regulator would take its cue on the proposed donation of Philweb shares from no less than Malacañang, adding that she has yet to be officially notified of the businessman’s offer.
“I have to study the matter and then discuss with the board and get feedback from the Office of the President,” Domingo said. “I am not yet in possession of any correspondence or communication regarding this matter.”
Likewise part of what was deemed as an ultimate sacrifice, Ongpin also offered to donate his remaining 4.7percent stake in Philweb to the Ateneo de Manila University JVO Scholarship Fund (named after his late brother Jaime V. Ongpin), the businessman said in a letter addressed to Domingo and the Pagcor board dated Aug. 17.
As of yesterday’s noontime deadline on the auction for his 53.76percent stake in Philweb, Ongpin said he had received five bids for these 771 million shares.
“However, due to the reports in the media that under no circumstances will the Philweb license be renewed, I have decided that it is not appropriate, nor fair to the bidders for me to award my shares to any of the bidders,” Ongpin said.
Philweb’s intellectual property licensing and management agreement (IPLMA) contract expired last Aug. 10 and was no longer renewed by Pagcor.
“As you know, the bid is contingent on the renewal by Pagcor of Philweb’s license and the reports in the media that the license will not be renewed under any circumstances render the auction process moot and academic,” he said.
The donation to Pagcor was cited as “a final attempt to save the jobs of about 700 Philweb employees, plus about 5,000 others who are employed by the Pagcor operators in 286 e-Games sites.”
“Why 49 percent? This is simply to avoid Philweb being classified as a governmentowned and controlled corporation (GOCC), which would make various restrictions applicable to GOCCs result in making Philweb’s operations untenable,” Ongpin said.
Philweb was valued by the stock market at P10.77 billion as of yesterday’s close. This meant Ongpin’s 53.76-percent stake was worth about P5.8 billion. But before President Duterte assumed office and singled out Ongpin as an “oligarch” that he would destroy, Philweb was valued at P35 billion.
As Pagcor was both a regulator and operator—in fact operating several casinos all over the country—Ongpin said there was no reason why Pagcor could not come in as the biggest shareholder of Philweb.