Close  
  • share this

PLDT nearing deal with likely buyer of Voyager

/ 05:18 AM September 28, 2018

A group of foreign investors that includes Tencent Holdings, the Chinese technology giant that developed WeChat, is nearing a deal to acquire a majority stake in PLDT Inc.’s Voyager Innovations.

Industry sources with knowledge of the matter said a transaction was being finalized and that an announcement was imminent.

ADVERTISEMENT

A PLDT official declined to comment on the deal as discussions were confidential.

The potential sale of a majority stake in Voyager, which mainly develops financial technology platforms and whose most recognizable product is mobile wallet PayMaya, was first announced by PLDT chair and CEO Manuel V. Pangilinan in early August.

FEATURED STORIES

Pangilinan did not name the investors, which included large private equity firms, but said the deal would be closed in about a month. The sale, which he said would result in a “significant gain for PLDT,” comes as PLDT commits to invest more on its telecom infrastructure while cutting noncore assets. The latter included the sale of most of  its shares in Germany’s Rocket Internet in May and its remaining position in Manila Electric Co. in 2017.

Pangilinan said the new investors would take a majority position as well as management participation in Voyager, which PLDT had been funding since the unit was established five years ago.

PLDT will retain a minority stake, he said.

PLDT had indicated that it was open to taking on new investors in Voyager since 2017. Pangilinan, in May, had named Tencent as among those interested to invest in Voyager but he did so only to say that talks had bogged down and might not materialize within the year.

Tencent’s social media, digital payments and gaming platforms have made it one of China’s largest tech players. Its entry into Voyager echoes a similar investment in the Philippines that was made last year by Chinese billionaire Jack Ma, whose Alibaba and Ant Financial are competitors of Tencent.

In September 2017, Ant Financial took a stake in Globe Fintech Innovations Inc., which runs the GCash mobile wallet, a rival of PayMaya in the Philippines.

PLDT and Globe Telecom are the dominant telco players in the Philippines, where over 75 percent of its population of 100 million do not have a bank account. At the same time, mobile penetration is above 100 percent, opening up a big opportunity for e-wallets and other fintech platforms.

ADVERTISEMENT

Pangilinan said in August that PLDT was concerned about fully financing the expansion plans of Voyager, whose platforms have shown exponential growth, however, profitability remained elusive. Pangilinan said PLDT had invested some P10 billion in Voyager  thus far. Voyager posted losses of about P1.3 billion in the first semester of 2018.

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Chinese technology giant, PLDT Inc.’s Voyager Innovations, Tencent Holdings
For feedback, complaints, or inquiries, contact us.
newsinfo

Duterte: I will fire more execs next week

March 27, 2019 12:07 AM

entertainment

Opening today

March 27, 2019 12:02 AM




© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.