PLDT Inc., Manila Electric Company (Meralco), and Metro Pacific Investments Corporation are infusing a total of P570 million into DigiCo which is investing the same amount for a stake in Bayad Center and Multipay Corporation.
In disclosures to the Philippine Stock Exchange (PSE), PLDT, Meralco, and MPIC said they entered into separate subscription agreement with DigiCo, formally known as Kayana Solutions Inc. (formerly Limitless Growth Ventures Inc.).
The agreements call for the subscription of an aggregate of 570 million additional common shares in DigiCo. As a result of these additional subscriptions, DigiCo is now 45 percent-owned by PLDT, 27.5 percent-owned by Meralco, and 27.5 percent-owned by MPIC.
Prior to this transaction, DigiCo was owned by 60 percent owned by PLDT, 20 percent by Meralco, and 20 percent by MPIC.
PLDT disclosed last August that DigiCo invested P570 million to acquire a 10 percent interest in Bayad Center and 100 percent of Multipay Corporation.
DigiCo acquired 56,105 common shares of Bayad Center from Meralco’s Corporate Information Solutions Inc. for P5,703.59 per share or a total of P320 million.
DigiCo also acquired 903,000 common shares of Multipay from Multisys Technologies Corporation for P276.85 per share or a total of P250 million.
"Having both online and offline solutions, Bayad and Multipay are uniquely positioned to accelerate the country's shift to digital payments,” said DigiCo Chairman Manuel V. Pangilinan.
He noted that “these companies will improve the payment experience for the Filipino consumer and provide partners with integrated solutions."
“Harnessing the data assets of the MVP Group will enable us to deliver a superior, intuitive, and personalized customer experience, backed by insights that can uplift the way we serve our customers across the MVP Group,” Pangilinan added.
Under the deal, DigiCo will acquire a 10 percent stake in Bayad, a bills payment provider which serves more than 800 utility, financial, and various billers with a network of more than 104,000 touchpoints nationwide.
“For 18 years, Bayad has served the Filipino public through accessible, reliable, and impactful payment solutions. Our success is a testament to the unwavering trust placed in us by billing institutions, payment channels and the Filipino public,” said Bayad President and CEO Lawrence Y. Ferrer.
DigiCo also executed an agreement to acquire 100 percent of Multipay from Multisys whose strong relationship with various billers and digital payment channels is expected to complement and add value to an integrated payment platform's capabilities. Multisys is 46 percent owned by PLDT through PLDT Global Investments Holdings Inc.
"Multipay has come a long way, and we are confident that DigiCo will be in the best position to take Multipay to even greater heights," said Multisys President and CEO Victor Y. Tria.
DigiCo plans to leverage its expertise and resources to support Bayad's and Multipay’s growth trajectory while exploring and unlocking synergies in the MVP Group, according to DigiCo Chief Commercial Officer Kat Luna-Abelarde.
She added that "this is the latest milestone on our journey to drive new, innovation- led growth, and is aligned with the MVP Group's support for the Government's overall digitalization push, particularly financial inclusion for Filipinos across the nation."