Gregorio Ma. Araneta III’s investment firm, Gregorio Araneta Inc., has finalized the sale of its 57% controlling interest in PhilWeb Corp., a move marking Araneta’s complete exit from the gaming technology company. The stake was acquired by two local holding companies, Nexora Holdings, Inc. and Velora Holdings, Inc., for PHP 1.8 billion ($30.9 million). This transaction represents a significant shift in the ownership landscape of one of the Philippines’ leading online gaming service providers.
The Philippine Stock Exchange (PSE) temporarily halted trading of PhilWeb’s shares following the announcement of the sale to Nexora and Velora. The deal included 829.57 million common shares at a price of PHP 2.17 ($0.037) each. The strategic pause in trading allowed investors to digest the implications of the sale, which resulted in PhilWeb’s share price dropping over 20%, closing at PHP 4.06 ($0.070) per share once trading resumed.
Regulatory requirements under the Securities Regulation Code necessitate that any entity acquiring more than 35% of a listed company’s voting shares must conduct a mandatory tender offer to the remaining shareholders. PhilWeb anticipates that Nexora and Velora will adhere to these regulations within the prescribed timeline. This process could influence the company’s public float and has the potential to significantly increase foreign ownership from the current 4.9% to as much as 40%. However, due to PhilWeb’s lack of land assets, the company maintains that it will remain within the legal limits for foreign ownership.
The leadership dynamic within PhilWeb is also evolving as a result of this transaction. Edgar Brian Ng, who leads Nexora and holds dual roles as president and director at PhilWeb, emerged as a key player in the purchase. Additionally, Crisanto Roy Alcid, PhilWeb’s vice chairman and treasurer, is involved with Nexora, suggesting continuity in leadership despite the ownership transition.
Araneta’s divestment ends his engagement with PhilWeb, which he acquired from the late businessman Roberto Ongpin in 2016 for approximately PHP 2 billion ($34 million). This acquisition was pivotal, occurring shortly after the Duterte administration revoked PhilWeb’s gaming license in a broader campaign against perceived “oligarchic” control. During his tenure, Araneta was perceived as a stabilizing force, aiding the company in regaining its footing amidst regulatory challenges.
Market analysts view this transfer of control as a potential prelude to significant structural changes or even a backdoor listing by the new owners, though neither Nexora nor Velora have indicated such intentions. As the dust settles, the shift from Araneta’s stewardship to new management may set the stage for a reinvigorated growth trajectory for PhilWeb, one of the country’s pioneering online gaming service firms.
Looking at the broader industry implications, this sale could signal a trend toward the consolidation of gaming companies under local investors who are keen to capitalize on the burgeoning digital gaming market in the Philippines. The acquisition by Nexora and Velora highlights a growing confidence among local businesses to spearhead technological advancements and drive market expansion in the gaming sector.
However, some industry observers maintain a cautious stance regarding the future direction of PhilWeb under its new leadership. They suggest that while fresh investment could spur innovation and growth, it also comes with the challenge of navigating the complex regulatory environment that governs the gaming industry in the Philippines. Furthermore, the potential increase in foreign ownership could invite additional scrutiny and necessitate further strategic adjustments by PhilWeb.
From another perspective, the departure of Gregorio Araneta, a notable figure with deep ties to the business landscape, may remove a layer of influence that could either benefit or hinder the company, depending on one’s viewpoint. Araneta’s involvement had provided a sense of continuity and stability, which market participants now hope will be maintained under Nexora and Velora’s stewardship.
In conclusion, the acquisition of a majority stake in PhilWeb by Nexora Holdings, Inc. and Velora Holdings, Inc. represents a pivotal moment for the company and the broader gaming industry in the Philippines. As the new owners take the helm, the focus will be on steering PhilWeb through a competitive and regulated market while capitalizing on opportunities for growth and innovation. The unfolding changes will be keenly watched by investors, regulators, and industry stakeholders alike, as they assess the impact of this significant ownership transition on PhilWeb’s future prospects.
David Garato is a luminary in gaming journalism, renowned for peeling back the curtain on the gaming world with his witty and insightful commentary. A decade into weaving stories from the pixelated edges of indie games to the expansive universes of AAA titles, David’s work is a thrilling blend of analysis and adventure. When not writing, he’s live-streaming, sharing his gaming exploits with an engaged and growing audience. David doesn’t just write about games; he lives them, making him a trusted guide in the gaming community.
