Businessman Roberto Ongpin, who was tagged as an ‘oligarch’ by President Rodrigo Duterte, on Wednesday announced his plan to fully divest from PhilWeb Corp., to protect the electronic gaming company and its more than 5,000 workers.
“Exactly one week ago, Aug. 3, I was struck by lightning and named as an ‘oligarch that must be destroyed.’ The lightning was obviously meant for me and me alone and not for other shareholders of PhilWeb numbering 1,500, employees, and employees of PhilWeb numbering 679 people nor the 135 entities who operate 286 e-Games throughout the country [and] who employ an estimated 5,000 people,” Ongpin said.
“They are all innocent bystanders, who beginning midnight tonight will be all out of jobs,” Ongpin said in a speech during PhilWeb’s emergency stockholders’ meeting.
The Philippine Stock Exchange on Wednesday approved PhilWeb’s request for a voluntary trading suspension until Aug. 23. The gaming company’s shares have fallen 70 percent since Aug. 3 through Tuesday, wiping out about P14 billion ($300 million) in market value. The stock exchange’s main index rose 2 percent during the period.
Ongpin said as a final effort to save the company and thousands of jobs that would be affected by the non-renewal of PhilWeb’s gaming license, he would sell his entire 771,749,896 shares, equivalent to 53.76 percent of the total outstanding shares of PhilWeb via open auction.
He said while no floor price was set, interested bidders should have financial capability. The open auction will run for one week. The winning bidder will be announced Aug. 18.
Ongpin said the winning bidder would also have the option to withdraw from the deal in case the company failed to secure a new contract with state-run Philippine Amusement and Gaming Corp. by Aug. 31, 2016.
“I am totally mystified by why I was hit by this lightning. I never met the president [Duterte] and never stepped on any toes of anyone that are his close associates,” Ongpin said.
Ongpin last week resigned as chairman and director of PhilWeb to protect the company.
He said his resignation was not enough and that he had to be totally out of PhilWeb.
PhilWeb president Dennis Valdes said he was hopeful the company would be able to get a new gaming license from Pagcor.
“We hope to re-start business after this short suspension of operations,” Valdes said.
Ongpin said PhilWeb was a valuable company generating P4 billion in cash-flow every year. He said of the P4 billion, P2.5 billion went to Pagcor while P1.5 billion remained with PhilWeb.
The Philippine Stock Exchange on Wednesday approved PhilWeb’s request for a voluntary trading suspension until Aug. 23.
Ongpin served as trade minister under Ferdinand Marcos until the late Philippine dictator was ousted in 1986, after which the Harvard-trained businessman rebuilt his clout to become among the country’s most prominent, and its 20th-richest person as ranked by Forbes. Naming Ongpin in his Aug. 3 speech, Duterte said he wants to end the tycoon’s influence.
“Destroy the oligarchs that are embedded in government now,” said Duterte, who was elected president in May and took office June 30. “These are the guys who just sit in their jets and in their mansions everywhere, and their money trickle like a taxi meter.”