Ongpin explores options on PhilWeb divestment

Businessman Roberto Ongpin has decided to divest his entire holdings in PhilWeb Corp. in yet another attempt to save the gaming technology company from permanent closure.

Ongpin is now in talks with investment bankers on how best to go about the divestment of his 771.6 million shares or about 53.76 percent of PhilWeb.

In a letter to PhilWeb directors and employees, Ongpin said the company was unlikely to get any favorable response from the Philippine Amusement and Gaming Corp. regarding the renewal of its license.

PhilWeb’s license as a service provider of the e-Games network or Internet cafes regulated by Pagcor, expired on Aug. 10.

“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.

“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 added.

Nevertheless, Ongpin said he would still support the government’s campaign against illegal drugs.

“From the proceeds of this divestment, I intend to donate the sum of P1 billion toward the government’s drug rehabilitation program (which incidentally is the same amount that San Miguel Corp. has pledged to donate for this program),” Ongpin said.

“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,” the businessman said.

There were 287 e- Games cafes across the country, majority of which are owned and operated by 131 independent entrepreneurs.

Shares of PhilWeb closed nearly 15 percent up to P6.72 percent yesterday.