Philippine securities regulators have approved the sale of gaming technology provider PhilWeb but it remains to be seen whether the business has a future in the country.

On Friday, PhilWeb informed the Philippine Stock Exchange that the Philippine Securities and Exchange Commission (SEC) had given its initial approval of businessman Gregorio Araneta III‘s purchase of 653m PhilWeb shares belonging to founder Roberto Ongpin (pictured).

Araneta has agreed to acquire Ongpin’s remaining 118.5m shares in PhilWeb at a later date. The SEC okayed the sale of the initial block of Ongpin’s stake “simultaneously with the commencement of the mandatory tender offer” (MTO) to PhilWeb’s minority shareholders.

Araneta has sought exemption from the MTO requirement but but Friday’s announcement sated that the SEC had ordered Araneta to complete the second half of his Ongpin deal “not later than the conclusion of the MTO.” The sale of Ongpin’s total PhilWeb holdings, which represent 53.76% of the company, is worth a reported P2b (US $41.5m).