MANILA, Philippines - Majority shareholders of GMA Network Inc. are hopeful of finally closing a deal with businessman Ramon S. Ang for the acquisition of a minority interest in the listed broadcast company.
GMA chairman Felipe Gozon said the purchase agreement that would pave the way for Ang’s entry into the company would be signed this month.
“It is taking long but we are now in the homestretch and hopefully we will be signing the purchase agreement by the end of this month,” Gozon said.
While the deal is taking quite a while, he said the remaining issues are expected to be resolved leading to the signing of the purchase agreement within the month.
“It is the small dots, the commas and all that sort of things. Well it is a big amount that we are talking about so I cannot blame them also. But to me the issues are not significant,” he added.
As early as June, Ang announced that the planned acquisition of a 30 percent stake in GMA was a done deal.
The families of chairman Felipe Gozon, president Gilberto Duavit and Menardo Jimenez control a majority stake in GMA.
Last May 5, Ang and Gozon confirmed talks are ongoing for a possible acquisition of a stake in GMA.
Shareholders of GMA entered into talks with Ang after negotiations with businessman Manuel V. Pangilinan’s PLDT bogged down anew.
Gozon told reporters yesterday that GMA is looking at better financial performance next year as politicians prepare for the 2016 Presidential elections.
Earnings of GMA plunged 33 percent to P1 billion in the first nine months of the year from P1.49 billion in the same period last year. Revenues fell nine percent to P8.9 billion from P9.75 billion due to the absence of election-related advertisements this year.
GMA recorded P724 million worth of election-related advertising revenues last year.
Likewise, the company’s expenses declined by one percent to P7.5 billion from P7.6 billion.
For the third quarter alone, GMA reported a 20 percent rise in net income to P422 million from P353 million as revenues climbed four percent to P3.14 billion form P3.03 billion while expenses increased four percent to P2.59 billion form P2.52 billion.
For 2015, GMA Marketing and Productions president and chief operating officer Lizelle Maralag said prospects are good for the company due to the scheduled political exercise in 2016.
“For next year, it is a preview year prior to the election year and we have seen a lot of political advocacies starting to advertise already. Other than the political advocacies we should see a slight uptick as far as national advertisers are concerned. So we are looking at a bullish growth for 2015,” she said.