GMA 7 uses peso equivalents
Credit to Author: EMETERIO SD. PEREZ| Date: Tue, 18 Jun 2019 16:19:22 +0000
In a general information sheet (GIS) issued in 2019 and still posted on the website of the Philippine Stock Exchange (PSE), GMA Network Inc. reported 12.5 billion as authorized capital stock (ACS). The TV network divided its ACS into 5 billion common shares with par value of P1 per share and 7.5 billion voting preferred shares with much lower par value of P0.20 per share.
Of GMA 7’s ACS, 1,959 stockholders owned 3,361,047,000 common shares while 37 stockholders held 7,499,507,184 voting preferred shares, for a total of 10,860,554,184 outstanding shares. At P0.20 per voting preferred share, 7,499,507,184 voting preferred shares equals P1,499,901,436.80 plus P3,361,047,000 equals P4,860,948,436.80.
Group Management & Development Inc. is GMA Network’s top stockholder with 789,813,389 common shares, and 2,625,805,308 voting preferred shares, for a total of 3,415,618,697 shares, or 27.05 percent, according to the GIS. At P0.20 per voting preferred share, 2,625,805,308 equals P525,161,061.60 plus P789,813,389 equals P1,314,974,450.60.
The other stockholders of GMA Network and their respective ownerships are as follows: GMA Holdings Inc., 730,023,500 GMA common shares, or 15.29 percent; FLG Management & Development Corp., 689,144,527 GMA common shares and 2,181,898,644 preferred shares, for a total of 2,871,043,898,644 shares, or 23.15 percent; M. A. Jimenez Enterprises Inc., 453,882,095 GMA common shares, and 1,508,978,826 preferred shares, for a total of 1,962,860,921 shares, or 15.55 percent; Television International Corp., 334,378,037 GMA common shares, and 1,111,661,566 preferred shares, for a total of 1,446,039,647 shares, or 11.55 percent; Gozon Development Corp., 14,033,954 GMA common shares and 46,245,306 preferred shares, for a total of 60,279,260 shares, or 0.48 percent; Gozon Foundation Inc., 5,144,361 GMA common shares, and 15,020,670 preferred shares, for a total of 20,165,031 shares, or 0.17 percent.
Gilberto R. Duavit Jr., and Felipe S. Yalong, owned 4,007,005 GMA common shares and 12 preferred shares, for a total of 4,007,017 shares, or 0.08 percent, and 1,025,002 GMA common shares, and six preferred shares, for a total of 1.025,008 preferred shares, or 0.02 percent.
Ownership profile
A definitive information statement (DIS) in connection with GMA Network’s annual stockholders’ meeting on May 15, 2019 listed the following as the TV station’s stockholders: PCD Nominee Corp. held for GMA Holdings 730.769 million GMA common shares, or 21.72 percent; Group Management, 789,813,389 common shares, or 23.47 percent; FLG Management, 663,929,027 GMA common shares, or 19.73 percent; M.A. Jimenez, 453,882,095 common shares, or 13.49 percent; and Television International, 334,378,037 common shares, or 9.94 percent.
GMA Network’s preferred shareholders were Group Management, 2,625,805,308 shares, or 35.01 percent; FLG Management, 2,181,898,644 shares, or 29.09 percent; M.A. Jimenez, 1,508,978,826 shares, or 20.12 percent; and Television International, 1,111,661,610 shares, or 14.82 percent.
In the same DIS, GMA Network had issued a total of 7,428,344,388 preferred shares, or 99.04 percent. It listed three stockholders as owners of GMA Holdings, namely, Gilberto R. Duavit Jr., Felipe L. Gozon, and Joel Marcelo G. Jimenez.
Aside from being members of the nine-person board of GMA Network, Gozon is also the chief executive officer; Duavit, president and COO; and Felipe S. Yalong, executive vice president and chief finance officer.
Due Diligencer’s take
If anyone among the public investors would review the filings of GMA Network, they would find certain entries in them not only surprising; they would even wonder, for instance, how GMA Holdings’ ownership of 730,023,500 would be equal to 15.29 percent.
The public stockholders of GMA Network are invited to try doing the division themselves–15.29 percent of x equals 0.1529 of 10,860,554,184 equals 1,660,578,734.7336, which is not correct since GMA Holdings owned 730,023,500 GMA common shares, or, as the GIS showed, would be equal to 15.29 percent.
When computed, Due Diligencer arrived at 15.018 percent and not 15.29 percent. My own computation could be wrong.
As far as Group Management’s ownership of 789,813,389 GMA common shares and 2,625,805,308 voting preferred shares is concerned, the stockholder could have made the following computation: P1,314,974,650.60 divided by P4,860,948,436.80 equals 27.052 percent, which could be shortened to 27.05 percent, as listed in the DIS.
How the results of GMA Network’s fundamental processes may be different from those of the public investors could be easily explained. The TV network used the peso equivalents instead of the number of common and voting preferred shares and divided the peso equivalents of ownership by outstanding amounts of common and voting preferred shares.
Thus, FLG Management did not use 2,871,043,171 shares divided by 10,860,554,184 outstanding common and voting preferred shares which would have been equal to 26.436 percent and not 23.15 percent, as listed by GMA Network in the GIS. Its ownership of P1,125,524,255.80 divided by P4,860,948,436.80 equals 23.154 percent. This reflects the percentage equivalent of FLG Management’s P1,125,524,255.80 by dividing the peso amount of ownership by P4,860,948,436.80.
Is there any other way to deprive the public of their role as investors in GMA Network’s Channel 7 and radio stations? Just asking.
esdperez@gmail.com
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