Antonio Tiu
Businessman Antonio Tiu-led AgriNurture Inc. (ANI) is taking over fintech Pay8 Inc. from the DFNN Group as part of its bid to “digitally transform” the local agriculture and agrarian sector and contribute to local financial inclusion.
ANI signed a memorandum of agreement to acquire up to 51 percent of Pay8’s authorized capital stock from DFNN unit, HatchAsia, after effecting an increase in Pay8’s capitalization, ANI disclosed to the Philippine Stock Exchange (PSE) on Tuesday.
The PSE suspended trading on ANI on Tuesday, pending the submission of a more comprehensive disclosure, noting that this transaction was covered by the rule on substantial acquisitions and reverse takeovers.
Based on current valuation, the corresponding value of the 51 percent stake is P377.91 million but final valuation is subject to ANI’s conduct of due diligence before the execution of definitive agreements.
Pay8 currently has a wide array of existing contracts including providing payment centers to utilities like provincial and rural electric cooperatives. It also has an existing contract with PhilPost to provide payment centers in far flung and unconnected areas. Pay8 is designed to function like a neighborhood payment center as opposed to traveling over land or sea just to make utility payments.
Hatchasia is partially owned by DFNN Group of companies, thus utilizing the strengths, network, and tech expertise of both listed firms.
“Through Pay8, the unbanked masses can have access to the banking grid even if they are in areas with no access to wired internet since it utilizes VSAT antennas. Linking the e-wallet of Pay8 to ANI’s affiliate banks within the ecosystem will allow farmers to access credit online and offline and withdraw its profit from any ATM throughout the country. ANI’s banks would also benefit having access to DFNN Group’s digital core banking platforms and secure identification platforms,” ANI said.
“Pay8 also envisions to serve Winsun Green Ventures, a fully owned subsidiary of Greenergy Holdings Inc. (GREEN) which is about to start introducing alternative energy generation options such as solar products in the CBD (central business district) and rural areas,” it added.