Two international giants to invest P920 million in PhilWeb

Two international investment powerhouses have agreed to pour in $11.25 million each or a total of P920 million in PhilWeb.com, a newly-established information technology firm.

Roberto Ongpin, PhilWeb chairman, said they have secured a financial commitment from Softbank of Japan, the largest Internet investment company in the world, and American International Group (AIG), the biggest diversified investment and financial services company in the US. Both have a market capitalization of approximately $130 billion.

Ongpin said the two giants will invest directly in PhilWeb and also in a joint venture company, which will provide capital for local Internet and IT start-up firms.

The electronic ventures capital company will be owned 50 percent by PhilWeb and 25 percent each by AIG and Softbank and to be separately listed in the Philippine Stock Exchange (PSE).

As part of the agreement, both AIG and Softbank will each appoint a director to represent them in the PhilWeb board.

"I am delighted by the strong vote of confidence of two of the largest companies in the world in investing in PhilWeb and in joint-venturing with us in a venture capital company. AIG, which is well-known for its conservatism, has seen fit to make this major investment in PhilWeb and that says a lot," Ongpin said.

Softbank is the acknowledged global leader in Internet investments, having shares in over 200 Internet companies worldwide, including Yahoo!, eTrade, Healtheon/WebMD, and Net2Phone and is expected to ensure a continuing Internet deal flow for PhilWeb, he added.

Ongpin is confident that with the joint venture with PhilWeb, investee companies of Softbank will naturally look to PhilWeb as their partner of choice in the Philippines.

Softbank investee partners cover almost every aspect of e-commerce in the internet world, he stressed.

"We couldn't have found two stronger partners anywhere in the world. This is not just a vote of confidence by these two international giants in PhilWeb, but on the Philippines itself, and the bright prospects for its internet futures, " Ongpin added.