Manny Pangilinan buying GMA 7 for P52.5 billion reports not true, GMA Network saysBy Angel Cuala on Jul 9, 2012 in Asia, Business, Local, Television •
Manila, Philippines – GMA Network Inc. (GMA 7) said on Monday, July 9, 2012 that reports saying ‘business tycoon Manuel V. Pangilinan (MVP) is buying their company for P52.5 billion’ are not true, noting that their company is not the source of the report.
Manuel V. Pangilinan
Image Credit: Interaksyon.com
According to a letter by GMA Network Inc. to Philippine Stocks Exchange (PSE) dated that day and was posted at PSE.gov.ph via a pdf file, its major shareholders have not signed a deal with Manny Pangilinan regarding the sale of the company, and that the alleged information did not come from them.
“We would like to inform the exchange and the public that the company is not the source of the information and that the company’s majority shareholders have not signed anything with the supposed buyer,” Ayahl Ari Augusto P. Chio, GMA Network‘s VP for investor relations and compliance, wrote on the letter.
Apparently, the letter mentioned a report of Philippine Daily Inquirer earlier that day, titled ‘MVP closer to deal: GMA 7 acquisition price seen at P52.5B’ written by Doris C. Dumlao, which was posted at Inquirer.net, saying that “several sources familiar with the discussions confirmed the deal to them.”
“The acquisition will be based on what was determined as an “enterprise value” of P52.5 billion for GMA 7. Enterprise value factors in preferred stocks, debt, and cash reserves that are usually not captured by mere market capitalization.” A statement reads on the Inquirer report that day.
Pangilinan, who is also the chairman of Philippine Long Distance Telephone Co. (PLDT), reportedly said about two weeks ago that he will pay in cash when his group buys GMA Network Inc, but there will be no GMA7-TV5 merging, noting that “they will have separate franchises, separate management, separate operations, and separate profiles.”
Earlier last month, Ricky Lo wrote on his Funfare post at PhilStar.com that MVP “virtually confirmed” the merging of GMA 7 and TV5 during a press conference in San Francisco, and to be formally announced by November this year; which was later denied by Pangilinan himself and said that he was only misquoted.
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