Thursday, January 19, 2012

Felipe Gozon wants to sell GMA-7

MANILA, Philippines - GMA Network Inc. surged by about 5 percent in afternoon trading on Thursday a day after its chairman said the broadcasting company was "for sale"at the "right price."
The company's share price opened at P6.8 a share, higher than Wednesday's close of P6.67.

On Wednesday, Felipe Gozon, GMA chairman said he was open to selling his stake in the company, quoting a price of P200 billion, which was way above the broadcasting firm's market value of P22 billion.

He however said that there are no ongoing talks for the sale of the company. In a disclosure to the Philippine Stock Exchange on Thursday, the company confirmed the information contained in InterAksyon.com's report.
He also said the company would likely earn P3 billion this year, or nearly double the P1.8 billion in profits it likely generated in 2011. The executive said the sharp increase in the profit guidance for this year owed to the "big improvement" year-on-year in ad sales and program ratings.

Gozon said the company in early January already secured 70 percent of its full-year ad sales target for 2012.


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