Ang, Gozon settle dispute on GMA buy-in

MANILA, Philippines - San Miguel Corp. (SMC) president Ramon S. Ang and GMA Network Inc. chairman Felipe Gozon have reached an amicable settlement on their dispute after the parties resolved issues over a failed buy-in deal in the media company.

In a joint statement yesterday, Ang and Gozon said they “have resolved their differences and have reached an amicable settlement on their dispute.”

Ang has agreed to drop the complaint he filed with the Department of Justice against Gozon and other GMA Network officials, namely Anna Teresa Gozon-Abrogar, Ismael Agusto S. Gozon, Belinda G. Madrid, Ma. Erlinda G. Gana, Jaime Javier Gana, Florencia Gozon Tarriela, Edgar Tarriela and Tricia Tarriela Valderrama after the GMA chairman agreed to return Ang’s P1 billion down payment.

Ang filed a syndicated estafa complaint against Gozon and the other officials of GMA for their failure to return the down payment even as talks for the planned share purchase transaction were terminated in June.

In a disclosure to the Philippine Stock Exchange on Aug. 5, Gozon said the retention of the down payment was intended to answer for claims against Ang among others, for opportunity loss, pursuant to law and the term sheet entered into by the parties.

The term sheet or the summary of principal terms and conditions relating to the sale and purchase of equity shares in GMA signed by Ang and the sellers – the Gozon, Jimenez and Duavit groups – contained the obligation to negotiate in good faith during the exclusivity period on the sale of shares of the network.

The exclusivity period was originally until April 20, 2014 and was extended until June 30, 2014 until it finally expired on Nov. 15, 2014.

After the lapse of the exclusivity period and failure of negotiation, Gozon did not return the P1 billion to Ang on Nov. 19, 2014 as earlier agreed and continued to conduct talks.

In March, Ang informed Gozon he would no longer proceed with the transaction, citing the long drawn negotiations.

The decision not to return the down payment was made as Gozon claimed it was

Ang who first backed out of the talks and decided not to proceed with the transaction.

In making the decision to retain the down payment, Gozon also said he did not consult with the other members of the Gozon group.

Ang has accepted Gozon’s explanation on the non-involvement of the other members of the Gozon group in the retention of the down payment.

 “The settlement was initiated by a third party who is known to both Mr. Ramon S. Ang and Atty. Felipe L. Gozon. It resulted in a mutually acceptable and win-win settlement for both parties,” GMA said in a filing to the PSE yesterday.