GLOBE Telecom, Inc. is spending P1.54 billion to acquire a majority stake in Electronic Commerce Payments, Inc. (ECPay).
The Ayala-led telecommunications firm on Friday told the stock exchange its acquisition of a 77% equity interest in ECPay from Payment One, Inc. and The Andresons Group, Inc. It bought 49.28 million shares in the firm priced at P31.25 apiece.
The deeds of assignment and other definitive documents were also signed Friday to close the transaction. Globe said the transaction was done in cash.
“Integrating ECPay into Globe’s network of retailers will add value to our distribution channels, enabling them to offer a suite of products and services via a single platform,” Globe President and Chief Executive Officer Ernest L. Cu was quoted as saying in a statement.
ECPay is in the business of providing information technology and electronic commerce related solutions. Adding it to Globe’s list of subsidiaries is expected to help small business owners that are with the company to “offer more products and services which in turn will stimulate the e-commerce industry and the digital economy.”
“It will also future-proof Globe’s distribution network, bringing the company a step closer to its vision of a digitally-enabled Philippines,” it said.
BPI Capital Corp. was the exclusive financial advisor to Globe Telecom for the transaction.
Last month, Globe also bought back its shares in tech company Yondu, Inc. from Xurpas, Inc. to become the sole owner of the firm. It said then the move is intended to boost the company’s enterprise business.
In the first six months of the year, Globe posted an attributable net income of P12.05 billion to grow 21% from last year due to the robust growth of its data business. It is allocating P63 billion for capital expenditures this year. — Denise A. Valdez