Buyout talks collapse anew as PLDT offer to buy GMA expires

MANILA, Philippines - Talks between Philippine Long Distance Telephone Co. (PLDT) and GMA Network Inc. collapsed anew after the telco’s offer to buy a minority stake in the broadcast media network expired early last month.

PLDT chairman Manuel V. Pangilinan said in an interview on the sidelines of the company’s press briefing on 2013 financial results that GMA did not respond to the company’s offer on the acquisition of a minority. “Our offer expired already. It expired in the first week of February,” Pangilinan said.

Both PLDT and GMA agreed to terminate talks for the acquisition of a controlling stake in the broadcast firm last October or even prior to the December deadline.

However, talks resumed last December only to be called off anew.

The PLDT Group through MediaQuest has expressed interest in acquiring the 79 percent stake covering both preferred and common shares owned by the families of Duavit, Gozon, and Jimenez in GMA with a market value of about P48 billion.

This was the second time the Pangilinan group has tried to acquire the broadcasting company after the deal entered into in early 2000 was aborted by the buyer for unknown reasons.

He pointed out that the PLDT Group is not keen on reviving talks. “Well we don’t know. I am getting tired,” Pangilinan said.

Pangilinan said PLDT is looking at acquiring a minority 34 percent interest in GMA. “There is no news. We don’t know what’s going on. There are no discussions ongoing at the moment because of a variety of reasons,” he added.

GMA is also talking to several potential buyers including San Miguel Corp. president and chief operating officer Ramon S. Ang who has a stake in Solar Entertainment Inc. of businessman Wilson Tieng.

PLDT’s affiliate MediaQuest Holdings is looking at acquiring GMA’s common shares while PLDT would pick up Philippine Depository Receipts (PDR). PDRs are a form of equity reserved for foreigners as the Constitution prohibits foreigners from having voting shares in media entities.

PLDT is controlled by Hong Kong’s First Pacific Co. Ltd. and Japan’s NTT DoCoMo but MediaQuest is owned by PLDT’s Beneficial Trust Fund.