Globe Telecom is consolidating its payments-related businesses by selling Electronic Commerce Payments Inc. (ECPay) to subsidiary Globe Fintech Innovations Inc. (Mynt), the parent company of GCash, in a transaction worth P2.31 billion.
In a disclosure to the Philippine Stock Exchange (PSE), Globe said it had entered into an agreement with Mynt for the sale of its 77 percent stake in ECPay. It involves 77 million ECPay shares at P30 per share.
Upon closing, Mynt will pay Globe P2.12 billion with the balance payable in the next three years less any potential claims, liabilities, costs, expenses, and penalties. Globe said the cash generated from the transaction can be used for its operations.
ECPay’s minority stakeholder, Payment One Inc., is likewise a party to the agreement, effectively making the transaction a full acquisition of ECPay by Mynt.
Incorporated in 2001, ECPay, is the leading electronic payment service provider in the Philippines. It was acquired by Globe in 2019 to enhance its distribution network.
The ECPay Platform enables merchant partners to process bills payments, electronic prepaid mobile phone top-up loading, electronic pins, e-wallet & cash card reloading, airline ticket payments, online shopping payments, and credit card payments in their various outlets.
“GCash’s meteoric rise to become one of the top fintech brands and the aggressive expansion of its financial services have created a perfect environment for strategic synergies with ECPay,” said Globe President and CEO Ernest L. Cu.
He added that, “Mynt’s acquisition of ECPay will enable more efficient and effective sharing of each other’s strengths and resources, thus creating a seamless and upgraded experience for their customers.”
Upon closing of the transaction, ECPay will have access to GCash’s platform, enabling ECPay to better traverse the ever-evolving digital landscape to which GCash is a leader in. As for Mynt, it is expected to better harmonize the capabilities of both ECPay and GCash.
The acquisition will help GCash provide best-in-class services in the fintech space and further democratize financial access.
“Mynt’s digital savviness will spill over to ECPay, maximizing its previously untapped potential. GCash, on the other hand, can further differentiate itself from its competition as mobile wallets in various shapes and sizes continue to pop up,” said Globe Chief Finance Officer Rizza Maniego-Eala.
She noted that, “with ECPay in Mynt’s capable hands, Globe can better steer its ventures and synergistically grow the entire Globe Group ecosystem.”
The deal is currently undergoing thorough reviews. Completion is expected upon receipt of approvals from the relevant regulatory bodies and satisfaction of closing conditions.