In a management takeover, President Marcos’ brother-in-law, Gregorio Araneta III, is divesting his entire 57 percent stake in the publicly listed gaming firm PhilWeb Corp. for ₱1.8 billion in favor of two firms, one of which is headed by PhilWeb’s President, Edgar Brian K. Ng.

PhilWeb disclosed to the Philippine Stock Exchange that its principal shareholder, Gregorio Araneta Inc. (GAINC), has entered into a Share Purchase Agreement with Nexora Holdings Inc. and Velora Holdings Inc. for the sale of GAINC’s 57 percent interest in PhilWeb.

This translates to 829.57 million PhilWeb shares sold at ₱2.17 per share. After a one-hour trading halt imposed by the PSE for investors to digest the disclosure, the market sold down PhilWeb’s stock on news, trading at down 1.77 percent at ₱5.00 per share (as of this writing) from ₱5.09 on Wednesday.

Araneta had acquired control over PhilWeb from the late Roberto V. Ongpin, who sold the company amid regulatory challenges due to the Duterte administration's crackdown on “oligarchs” in 2016.

The deal involved the sale of 771.65 million shares of Philweb, priced at ₱2.60 per share, for a total of ₱2 billion. The price was a huge discount to the market price of ₱6.22 a share, which was already a far cry from its peak as investors sold out of the stock during its hardship days.

PhilWeb said Ng is its current President and Director, and is also the current President, Chairman, and Director of Nexora, while current PhilWeb Vice Chairman and Director Crisanto Roy B. Alcid is a Director and the Treasurer of Nexora.

“The Buyers are domestic holding companies duly organized and existing under Philippine law, established to acquire, hold, own, dispose of, exchange, or otherwise invest in securities, properties, and related assets, with full rights of ownership, including voting rights.

“None of the Buyers is engaged in securities brokering, portfolio management for third-party clients, public solicitation of investments, or the issuance of investment contracts,” PhilWeb said.

As the acquisition involves control of more than 35 percent of the outstanding voting shares of PhilWeb. The buyers are expected to conduct a mandatory tender offer to all remaining shareholders within the period prescribed by law.

PhilWeb said, “The conduct of the Buyers and participation by shareholders other than GAINC in the mandatory tender offer may affect the Corporation's Public Float levels.”

It noted that completion of the transaction may result in an increase in the corporation's foreign ownership levels from 4.90 percent to 40 percent.

However, PhilWeb pointed out that, “As the corporation does not own land or is not engaged in a nationalized activity, any such increase will not impact Philweb's compliance with foreign capital ownership limitations under applicable law.”