MVP to make all-cash offer for GMA Network

MANILA, Philippines - The group of telecommunications magnate Manuel V. Pangilinan is looking to make an all-cash buyout of GMA Network Inc. as he noted that they are prepared to make a tender offer for the shares held by minority shareholders.

Panglinan, chairman of Philippine Long Distance Tele-phone Co., said his group continues to hold talks with the three major shareholders of GMA – the Jimenez, Gozon, and Duavit families – to take over the leading TV station.

“We need to go through certain approvals. We’re looking at an all-cash transaction. The purchase is likely to exceed the threshold that will trigger a mandatory tender offer. We are ready to make a tender offer to the minorities at the same price to be offered to the GMA owners,” Pangilinan said.

Pangilinan likewise pointed out that GMA and TV5 will operate separately and will have their own management and people.

He, however, said that there are still a lot of issues that need to be threshed out, but remained positive a deal would be concluded within the year.

On rumors other groups like San Miguel Corp. are keen on acquiring GMA, Pangilinan said: “They are free to sell to whoever they want. It really depends on the three families.”

The three major owners of GMA, which collectively own 77 percent of the network, were earlier reported to be willing to sell their stake to a buyer that would offer P100 billion for 100 percent of the company. 

Pangilinan, however, said he would pursue the planned acquisition at price lower than P100 billion.

GMA chairman and CEO Felipe Gozon said at that time that another conglomerate has offered to acquire GMA.

PLDT came close to buying a controlling stake in GMA in 2001. Talks,however, bogged down due to valuation issues.

The acquisition of GMA would catapult Pangilinan’s group to the number one position and would result to a virtual duopoly in the TV industry.

The PLDT Group, through TV5, is a far third in the broadcast market, currently dominated by rival networks ABS-CBN and GMA which account for more than 60 percent of audience share in the Philippines.