Pldt Gma7 Merger
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ACQUISITION OF GMA7 NETWORK, INC. BY BUSINESS TYCOON MANUEL V. PANGILINAN (MVP) OF PLDT THROUGH MEDIAQUEST HOLDINGS, INC. – A CRITIQUE PAPER
BACKGROUND
Businessman Manuel V. Pangilinan , Chairman and with interests on the companies listed below is moving closer to deal to acquire GMA7 Network, Inc (GMA7) at an estimated price of P52.5 billion, potentially grabbing a leading market position in the broadcasting industry for convergence with his group’s flagship telecommunication and media enterprises. 1. Philippine Long Distance Telephone Company (PLDT) 2. Associated Broadcasting Company (TV5), 3. Smart Communications 4. SPi Global 5. Meralco 6. Stradcom International Holdings 7. CURE Inc. (Red Mobile) 8. San Beda College 9. First Pacific 10. Cignal Digital TV 11. Pilipino Telephone Corporation (Talk ‘N Text) 12. First Pacific Tollways Corporation 13. Metro Pacific Investments Corporation 14. Philex Minging Corporation 15. Digital Telecommunications Philippines 16. Holy Angel University
Media Quest Holdings, Inc. the media conglomerate owned by the Beneficial Trust Fund of the PLDT, is the party to the buyout deal that will give it close to 80% control of GMA7 Networks. The Media Quest Holdings, Inc. owns the media establishments such as Associated Broadcasting Company (TV5), Nation Broadcasting Corporation (NBC), Cignal Digital TV (Cignal), Unitel Group and 30% interest in Business World Publishing Corporation (Business World).
The proposal of MVP’s group is that the acquisition will be based on what was determined as an “enterprise value” of Php52.5 billion. Enterprise value factors in preferred stocks, debt and cash reserves that are usually not captured by mere market capitalization. In this case, the package includes 1.5B in preferred shares that have five times more voting rights than common shares (now at 3.36B) but convertible at par to
ACQUISITION OF GMA7 NETWORK, INC. BY BUSINESS TYCOON MANUEL V. PANGILINAN (MVP) OF PLDT THROUGH MEDIAQUEST HOLDINGS, INC. – A CRITIQUE PAPER
BACKGROUND
Businessman Manuel V. Pangilinan , Chairman and with interests on the companies listed below is moving closer to deal to acquire GMA7 Network, Inc (GMA7) at an estimated price of P52.5 billion, potentially grabbing a leading market position in the broadcasting industry for convergence with his group’s flagship telecommunication and media enterprises. 1. Philippine Long Distance Telephone Company (PLDT) 2. Associated Broadcasting Company (TV5), 3. Smart Communications 4. SPi Global 5. Meralco 6. Stradcom International Holdings 7. CURE Inc. (Red Mobile) 8. San Beda College 9. First Pacific 10. Cignal Digital TV 11. Pilipino Telephone Corporation (Talk ‘N Text) 12. First Pacific Tollways Corporation 13. Metro Pacific Investments Corporation 14. Philex Minging Corporation 15. Digital Telecommunications Philippines 16. Holy Angel University
Media Quest Holdings, Inc. the media conglomerate owned by the Beneficial Trust Fund of the PLDT, is the party to the buyout deal that will give it close to 80% control of GMA7 Networks. The Media Quest Holdings, Inc. owns the media establishments such as Associated Broadcasting Company (TV5), Nation Broadcasting Corporation (NBC), Cignal Digital TV (Cignal), Unitel Group and 30% interest in Business World Publishing Corporation (Business World).
The proposal of MVP’s group is that the acquisition will be based on what was determined as an “enterprise value” of Php52.5 billion. Enterprise value factors in preferred stocks, debt and cash reserves that are usually not captured by mere market capitalization. In this case, the package includes 1.5B in preferred shares that have five times more voting rights than common shares (now at 3.36B) but convertible at par to