Businessman Roberto Ongpin said Monday he will push through with a plan to sell his entire stake in PhilWeb Corp. after state-owned Philippine Amusement and Gaming Corp. rejected all his offers.
Ongpin said in a letter to PhilWeb’s board of directors and employees there was no chance for PhilWeb to resume operations as long as he remained a shareholder in the company.
“After having resigned as chairman of PhilWeb, and after having made several offers to Pagcor, all of which have been either rejected or ignored, it has become obvious to me that, while I remain a shareholder of PhilWeb, there is no chance that PhilWeb will be allowed any favorable reception on any proposal to Pagcor,” Ongpin said.
“Thus, in an effort to save the company, its employees and the some 5,000 employees of the e-Games operators, I have come to the decision to divest of my entire holdings,” he said.
Ongpin said he was currently in discussion with several investment banking firms for the orderly and timely disposal of his shares.
He said of the proceeds from the divestment, he would donate P1 billion for the government’s drug rehabilitation program.
“It is heartbreaking for me to in effect abandon PhilWeb and all of its directors and employees who have, over the past 16 years, helped me grow it to be a successful and profitable enterprise. Regrettably, it appears that I have no other choice but to totally exit from the company for it to have a chance to survive,” Ongpin said.
Ongpin announced last month his plan to divest from PhilWeb through an open bidding process.
Five bidders expressed interest to acquire Ongpin’s stake in PhilWeb. Amid Pagcor’s statement that PhilWeb’s gaming license would not be renewed under any circumstances, Ongpin scrapped his plan and instead offered to donate his PhilWeb shares to the government. This offer was also rejected.
Sources said gaming firm Leisure Resorts World Corp. earlier expressed interest in acquiring Ongpin’s stake in PhilWeb on condition that PhilWeb would be able to secure the gaming license of Pagcor.