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GMA Network terminates buy-in talks with RSA

MANILA, Philippines - The majority shareholders of GMA Network Inc. abruptly terminated talks with businessman Ramon S. Ang regarding the acquisition of at least 30 percent stake in the listed broadcast firm.

The termination of talks could pave the way for the possible revival of talks with dominant carrier Philippine Long Distance Telephone Co. (PLDT).

GMA vice president Ayahi Ari Augusto Chio informed the Philippines Stock Exchange (PSE) that talks between Ang and the Jimenez, Gozon, and Duavit families for the purchase of at least a 30 percent interest in the company have bogged down.

“The company has been informed by its majority shareholders (Jimenez, Gozon and Duavit) the negotiation with Mr. Ramon S. Ang on the sale and purchase of a participating minority equity interest in the company’s outstanding capital stock is now deemed terminated,” Chio said in the disclosure.

Ang said he was surprised with the abrupt termination of the negotiations, prompting him to consult with his lawyer on his next course of action.

“I was surprised. I did not expect this. There was no indication they would do this in the middle of negotiations,” Ang said in a text message.

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Ang is now talking with his lawyer on his next move. “I am consulting with my lawyer and I am awaiting for an explanation,” Ang said.

For his part, Pangilinan earlier said the PLDT Group was open to renewing talks with the majority shareholders of GMA after previous botched attempts to buy into the listed broadcast company.

In a text message sent by MVP Group of Companies media head Michael Toledo, Pangilinan said the PLDT Group would need to work with over-the-top content providers like GMA amid the digital pivot that it is now undertaking.

“From that perspective, we’re open to any arrangement that marries platform with content in whatever space might exist or develop,” Pangilinan said.

Major shareholders of GMA Network include GMA Holdings Inc. with 25.17 percent, Group Management & Development Inc. with 23.47 percent, FLG Management & Development Corp. with 20.01 percent, M.A. Jimenez Enterprises with 13.49 percent, and Television International Corp. with 9.94 percent.

GMA Holdings is 99 percent owned by Gozon, GMA president Gilberto Duavit Jr. and Joel Marcelo Jimenez.

Both Ang and Gozon confirmed in May last year that talks are ongoing for a possible acquisition of a stake in GMA. Shareholders of GMA entered into talks with Ang after negotiations with PLDT chaired by Manuel V. Pangilinan bogged down anew.

Exactly a year ago, Ang announced he was personally acquiring a stake in GMA and the transaction involving the acquisition of at least 30 percent interest in the broadcast firm was a done deal.

In fact, Gozon last year said the majority shareholders of GMA would sign an agreement with Ang last November. The signing did not push through. Ang offered to buy GMA at P10.80 per share.

However, Gozon was singing a different tune last month when he announced talks with Ang had stalled,prompting the broadcast company to entertain other interested buyers including PLDT.

Gozon said last May 14 that majority shareholders of the company have adopted a wait-and-see attitude on the proposed entry of Ang’s Group into GMA.

“I have to be very truthful to you. That was some time ago, so if I say that we are still close nobody will believe me so I won’t say it. So at this point, let me just say that our attitude is wait and see. The ball is no longer in our court,” he said.

Aside from entertaining other potential buyers, he said shareholders of GMA are open to reviving talks with the Pangilinan group. Talks with the PLDT Group bogged down three times and the telecom provider’s last offer was at P9 per share. “Anything is possible,” he said.

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