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Wednesday, March 17, 2010

PhilWeb Says Board Approves Shares Issuance Plan

By Cris Larano

Dow Jones Newswires

MANILA -(Dow Jones)- PhilWeb Corp. (WEB.PH) said Wednesday its board approved a capital-raising proposal of its majority shareholder, which will involve the sale of as much as 26% of the listed online technology company after the sale.

Based on PhilWeb's latest market capitalization, the stake sale could raise around PHP5.6 billion ($122.8 million).

PhilWeb said the fund-raising exercise will help broaden the current investor base of the company, which is now controlled by the group controlled by former Finance Minister Roberto Ongpin.

Under a two-stage capital-raising plan, the Ongpin group will initially sell shares it owns in PhilWeb offshore. Thereafter, PhilWeb will issue an equal amount of shares to the Ongpin group to get the proceeds from the offshore sale, with PhilWeb shouldering the cost of the offshore shares sale.

All existing shareholdings in PhilWeb will be diluted equally after the share sale, which PhilWeb told the stock exchange will only proceed "depending on the extent of investor appetite and market conditions."

PhilWeb shares are trading Wednesday 2.9% lower at PHP16.75.

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