MVP majority purchase of STAR confirmed

MVP Group media bureau head Mike Toledo’s disclosure about a deal for the purchase of the majority stake in Philippine STAR by the MVP group has been confirmed both by PLDT chairman Manny V. Pangilinan (MVP) and PhilSTAR president and CEO Miguel G. Belmonte (MGB).

Details of the deal are expected to be finalized on or before Sept. 1, after which the MVP group – which currently holds a 20 percent stake in Star – will own around 60 percent of the publishing company with the transaction to be conducted in phases over a period of one year.

Miguel Belmonte confirmed to Spy Bits that Star has become the most profitable newspaper company over the past few years, having been number one in advertising for almost seven consecutive years. MGB also disclosed that all Star affiliate companies – namely tabloid company Pilipino Star Ngayon Inc., printing company Pilipino Star Printing Co., and Internet company Philstar Global – have been very profitable. All the three companies are included in the acquisition deal.

The Belmonte family will still own a minority stake in the Star and it was agreed that Miguel Belmonte will continue to be the publication’s president and CEO for an indefinite period of time even after the MVP group becomes the majority shareholder. It was further clarified that Sarah Soliven de Guzman, daughter of the late Star publisher Max Soliven, has a 10 percent stake in the Star and not 20 percent as erroneously reported by the Philippine Daily Inquirer.

The MVP group also has an 18 percent stake in PDI and it also recently increased its 30 percent share in BusinessWorld, the country’s oldest business newspaper, to 50 percent. Aside from The Philippine STAR, the MVP group intends to acquire other publications in the future, with plans to put up a holding company for all its publication assets. The MVP group foresees synergized media operations, wherein the reporting pool of BusinessWorld, PhilStar and TV5 (the PLDT Group’s broadcasting network) will be serving as content providers while Cignal Digital TV will serve as the interactive media platform. Cignal just recently marked a milestone, reaching the 500,000-subscriber mark in just four years of its operation. 

The MVP group’s media acquisitions are seen to transform the PLDT group into a first-of its-kind multimedia entity that would elevate its level into the new age of digital media publishing. The deal between Star and the MVP Group was described by observers as an excellent strategic move by both Manny Pangilinan and the Belmonte family.

High-end swindle

A disgruntled socialite sent Spy Bits an e-mail regarding an alleged investment scam along the lines of Aman Futures that reportedly victimized a number of well-heeled members of society – who have chosen to keep mum because they are close friends with the alleged perpetrators.

According to our source, it all began when members of a politically-connected family disclosed that one of their companies was in possession of a Salary Deduction Code that allowed them to extend loans to government employees on a nationwide scope – a supposedly profitable financing business. To generate more funds, the family members invited investors, promising high returns.

Being well-heeled and well-liked, the family attracted a lot of investors – who are now left holding an empty bag after the company reportedly went belly-up, leaving liabilities estimated at P1.3 billion. Apparently, the company never had an SD Code from a government department, and what they were engaged in was actually a Ponzi scheme. According to our source, the key player in the operation  – “the rock upon which the scheme was allegedly built on” – now seems to be as elusive as a bid to win in an Ironman Triathlon.

The firm is now reportedly under Court-appointed rehabilitation – a situation that our disgruntled source tells us is nothing more than a “consuelo de bobo” for all those who were duped since rehabilitations takes a long time, with investors most likely recovering their money in pathetic trickles. Meanwhile, the family members who inveigled their friends reportedly continue with their merry, high-profile, lavish ways. Some of the socialite’s friends reportedly sighed in disgust, “With friends like these – who needs enemies?”

Spy tidbit

President Noy Aquino’s fourth State-of-the-Nation Address (SONA) just confirms what many businessmen continue to believe – that the country will be treading a straight path to progress as far as the economy is concerned.

Like in any administration, the second half will always be more challenging because people’s expectations are raised, and it is during this time when people will see whether the initiatives started by the administration will push through or otherwise. Which is why it’s perfectly understandable to sense a 50-50 percent sentiment among the general public regarding the President’s “halftime” performance.

In any case, the release of the latest survey results from the Social Weather Stations showing the president’s public satisfaction rating slightly increasing to 76 percent – two percent higher than the first quarter’s 74 percent – seems to reinforce the continued confidence of business groups with this administration. Our own informal survey also shows the President getting not just a passing mark but a fairly high rating.

The big and nagging question from businessmen is – who will be replacing the president in 2016? Will he follow the same economic path of PNoy?

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