RSA, GMA-7 set to sign buy-in deal

MANILA, Philippines - GMA Network Inc. expects to sign the share purchase agreement which would formalize businessman Ramon S. Ang’s entry into the broadcast firm this month.

“(The signing) may be within this month,” GMA Network chairman Felipe Gozon told reporters yesterday.

He said the parties have agreed on the basic items of the transaction and are just working on the required documentation for the deal.

Ang, who serves as president and chief operating officer of diversified conglomerate San Miguel Corp., is acquiring a 30 percent stake in GMA Network.

The shares to be acquired by Ang are currently held by three families – Gozon, Duavit and Jimenez – that control the broadcast firm.

The acquisition is Ang’s latest venture into the broadcast media after partnering with Wilson Tieng of Solar Entertainment Inc.

Gozon said Ang’s entry into GMA Network is not expected to result in a management change.

“That’s what he said. He is not interested in intervening,” he said.

As for the outlook on earnings this year, Gozon said GMA is sticking to its projection of matching last year’s P1.67 billion, even as the port congestion has resulted in a reduction in advertisers’ placements.

“We are not changing our targets,” he said.

Gozon said GMA could surpass last year’s net income this year if advertisers were not affected by the port congestion.

“Our sales are now improving in spite of port congestion. I was just hoping it would improve more. If not for the port congestion, we are okay with the target. We might even exceed it,” he said.