Gregorio Araneta Sells Majority Stake in PhilWeb
Araneta Sells Majority Interest in Gaming Company PhilWeb
Gregorio Ma. Araneta III has exited his investment in the gaming technology sector by selling his controlling 57% stake in PhilWeb Corp. His investment firm, Gregorio Araneta Inc., completed the sale to two Filipino holding companies, Nexora Holdings Inc. and Velora Holdings Inc., for a sum of PHP 1.8 billion (approximately $30.9 million). This transaction marks Araneta’s full withdrawal from the company he acquired nearly a decade ago.
Trading Suspension After Ownership Change
PhilWeb announced to the Philippine Stock Exchange that the transaction involved 829.57 million common shares priced at PHP 2.17 each (around $0.037). Nexora and Velora, both local entities, were established specifically to acquire and manage investments in securities and other assets, but do not solicit public investments or manage third-party funds.
Upon announcement, the Philippine Stock Exchange temporarily halted trading of PhilWeb stock for an hour to allow investors to assess the news. When trading resumed, PhilWeb’s share price fell sharply by over 20%, closing at PHP 4.06 per share (about $0.070).
By law, acquiring over 35% of a publicly-listed company’s voting stock requires the buyer to make a mandatory tender offer to remaining shareholders. PhilWeb expects the new investors to comply with this within the regulatory timeframe. This move could alter the company’s public float and increase foreign ownership substantially—from 4.9% up to potentially 40%—though PhilWeb maintains it will stay within foreign ownership limits since it does not own any land assets.
New Leadership and Future Direction for PhilWeb
The ownership change also brings a management shift at PhilWeb. Edgar Brian Ng, who leads Nexora and serves as PhilWeb’s president and director, was among the key buyers. Additionally, Crisanto Roy Alcid, PhilWeb’s vice chairman and treasurer, also has ties to Nexora, suggesting some continuity in leadership despite new ownership.
Araneta’s divestment concludes his involvement in PhilWeb, a company he originally acquired in 2016 from the late businessman Roberto Ongpin for around PHP 2 billion (roughly $34 million). This acquisition took place shortly after the Duterte administration revoked PhilWeb’s gaming license as part of efforts to dismantle alleged oligarchic dominance in gaming.
Araneta’s takeover was initially viewed as a stabilizing influence aimed at restoring company operations under new leadership. Industry observers speculate the recent transaction could signal major structural changes or a potential backdoor listing by the new owners, although no official word has been given on these possibilities. Ultimately, the sale transfers control of one of the Philippines’ pioneering online gaming service providers from a politically connected owner to new investors poised to steer its next phase of growth.
