MVP says deal with GMA may be finalized this year

MANILA, Philippines - An agreement on the planned investment of the Philippine Long Distance Telephone Co. (PLDT) group in GMA Network is likely to be reached this year as discussions are moving positively, PLDT chairman Manuel V. Pangilinan said.

“It is likely that an agreement will be reached within the year between the sellers and the buyer,” Pangilinan told reporters following PLDT’s stockholders meeting yesterday.

He said discussions with three major stakeholders of GMA and him are moving positively.

He said though not nothing has been finalized so far.

When asked if he is optimistic that the PLDT group would soon be able to enter GMA, he said he thinks “there is desire from both parties to come to terms.”

He said that while there are still many issues that need to be discussed, there are positive vibes coming from both sides for the planned investment of PLDT in GMA.

He also said that even as he expects an agreement to be reached with GMA on the planned acquisition, the closing of the deal would be subject to a number of precedent conditions which still needs to be satisfied by both parties.

“There are conditions precedent on their side and that will be required on our side. When those conditions are fulfilled, then we have to give them the money and they have to give us our shares,” he said.

He said it would be difficult to give a date as to when the principal conditions for the planned acquisition would be met.

The three major owners of GMA said last month they would sell their stake in the broadcast company to a buyer that would offer P100 billion for 100 percent of the company.

GMA chairman and CEO Felipe Gozon said at that time that more than one conglomerate has offered to acquire GMA and one of them is Pangilinan, who owns TV5.

The 77 percent stake in GMA which is not publicly-owned are held by Gozon, the Duavits, and the Jimenezes.

Pangilinan said yesterday though that he plans to pursue the planned acquisition of the broadcast company at a price lower than P100 billion.

In 2001, the Pangilinan group already offered around P48 billion for 100 percent of GMA.

GMA president and COO Gilbert Duavit Jr., said though the talks between them and Pangilinan did not yield positive results as the PLDT group had to prioritize the financial needs of Piltel then.