MANILA -Globe Telecom is boosting the payment platforms of unit Mynt, the operator of GCash, ahead of an anticipated initial public offering (IPO) that would create the largest financial technology group on the Philippine Stock Exchange.
In a stock exchange filing on Monday, Globe announced the proposed sale of its 77 percent stake in Electronic Commerce Payments Inc. (ECPay) to Mynt for P2.3 billion.
The sale value was about 50 percent higher than Globe’s acquisition cost in 2019.
“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,” Globe CEO and president Ernest Cu said in the filing.
“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,” he added.
READ: Mynt, fintech firm behind GCash, reaches ‘double unicorn’ status
The deal is still subject to various regulatory approvals and closing conditions, Globe said.
Established in 2011, ECPay is a payment platform that allows merchant partners to process bills payments, electronic prepaid mobile phone top-up loading, electronic pins, e-wallet and cash card reloading, airline ticket payments, online shopping payments, and credit card payments in their various outlets.
ECPay’s minority stockholder, Payment One Inc., also joined the sale, according to Globe. This means Mynt is acquiring 100 percent of ECPay.
ECPay acquisition
“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,” Globe chief finance officer Rizza Maniego-Eala said in the same filing.
“With ECPay in Mynt’s capable hands, Globe can better steer its ventures and synergistically grow the entire Globe Group ecosystem,” she said.
Globe added the deal will “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,” it said.
Oscar Reyes Jr., CEO of Mynt subsidiary G-Xchange Inc., told reporters they were still in the midst of preparations for Mynt’s public listing.
“The standing order from [Globe CEO Ernest Cu] is for us to be IPO ready. So we’re doing everything to make that happen,” he said.