Gregorio Araneta Sells Majority Stake in PhilWeb

Gregorio Ma. Araneta III’s investment company, Gregorio Araneta Inc., has completed the sale of its controlling 57% share in PhilWeb Corp. The buyers, two local holding companies named Nexora Holdings, Inc. and Velora Holdings, Inc., paid a total of PHP 1.8 billion ($30.9 million) for the stake. This deal signals Araneta’s complete departure from the gaming technology company he acquired almost ten years ago.

PSE Suspends PhilWeb Trading Following Sale of 57% Stake to Nexora and Velora

In a statement to the Philippine Stock Exchange (PSE), PhilWeb reported that the deal involves 829.57 million common shares priced at PHP 2.17 ($0.037) each. Nexora and Velora, both local companies, were set up to buy and handle investments in securities and other assets. PhilWeb made it clear that the buyers do not solicit investments or manage funds for others.

The PSE stopped trading PhilWeb’s stock for an hour on Thursday morning after the announcement. This gave investors time to think about how the deal might affect things. When trading started again, PhilWeb’s share price dropped by more than 20%, ending at PHP 4.06 ($0.070) per share.

According to the Securities Regulation Code when someone buys over 35% of a listed company’s voting shares, they must make a mandatory tender offer to the other shareholders. PhilWeb expects the buyers to follow this rule within the given timeframe. This tender offer might change the company’s public float and boost its foreign ownership from 4.9% to as much as 40%. However, PhilWeb does not own any land, so the company says it will still meet foreign ownership limits.

Leadership Transition at PhilWeb Signals Fresh Direction After Araneta Sale

The sale also marks a shift in PhilWeb‘s management. Edgar Brian Ng, who heads Nexora and holds the roles of president and director at PhilWeb, was named as one of the main purchasers in the transaction. PhilWeb‘s vice chairman and treasurer, Crisanto Roy Alcid, also has a role in Nexora, hinting at leadership stability despite the change in ownership.

Araneta‘s sale marks the end of his involvement with PhilWeb, a company he bought from the late businessman Roberto Ongpin in 2016 for around PHP 2 billion ($34 million). This purchase happened right after the Duterte government canceled PhilWeb’s gaming license as part of its efforts to crack down on what it called “oligarchic” control.

When Araneta stepped in, people saw it as a way to bring stability to the company and get its operations back on track under new ownership. Market experts see the deal as leading to a big change in structure or maybe a backdoor listing by one of the buyers, though neither has said this is their plan. For now, the sale shifts control of one of the nation’s first online gaming service companies from the President’s in-law to new owners ready to guide PhilWeb‘s next growth stage.