PhilWeb Corporation is planning to sell shares equivalent to 26 percent of its capital via private placement to investors overseas to raise about P7.58 billion based on its current market capitalization of P21.58 billion.

In a disclosure to the Philippine Stock Exchange, Philweb said its board has approved an equity fund raising exercise to broaden its current investor base and to raise proceeds for the company at the earliest possible time.

The equity fund-raising exercise will have two concurrent stages. The first stage involves the sale offshore by Philweb’s controlling shareholder, Roberto V. Ongpin and certain of his affiliates, of a portion of their existing legal and beneficial interest in the Company by way of marketed placing.

At or about the time of the placing, Ongpin’s group will enter into a subscription agreement with Philweb to subscribe to the same number of shares as they have collectively sold, which will be equivalent to no more than 26 percent of the Philweb’s resulting outstanding capital stock.

The Subscription price will be the same as the Placing price, however, all expenses in connection with the Transaction will be borne by the Philweb.

An application for additional listing of the shares to be issued to the Ongpin group arising out of the subscription will be made as soon as practicable thereafter.

Since there will be the same number of Placing and Subscription shares, the number of shares held by the Ongpin group as well as the other existing shareholders will be the same even though they will be diluted proportionately.

Philweb will call a special meeting of its stockholders on May 27, 2010 (to coincide with the annual stockholders’ meeting) for the purpose of fully apprising the stockholders of the conduct of the Transaction and, if necessary, seek approval of the stockholders for the issuance of the Subscription Shares and the listing thereof with the PSE.