Globe Telecom, Inc. is divesting its ownership in Electronic Commerce Payments, Inc. (ECPay) to the parent company of electronic wallet platform GCash for a total of P2.31 billion.
On Monday, Globe announced in a stock market report that it had made a deal with Globe Fintech Innovations, Inc. (Mynt) to sell its 77% ownership of ECPay.
The telecommunications company stated that Payment One, Inc. has consented to the acquisition of ECPay by Mynt, as they own a 23% share in the company.
Globe stated that the transaction is currently pending regulatory reviews. They anticipate that the agreement will be finalized once it receives approval from regulators.
“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,” Ernest L. Cu, president and chief executive officer of Globe, said in a statement.
Globe stated that the purchase will aid GCash in offering top-quality services in the field of financial technology and continue to promote equal access to financial services.
Once the transaction is finalized, ECPay will gain entry to GCash’s platform, giving it the ability to utilize the digital realm. Mynt’s involvement is anticipated to enhance the capabilities of both ECPay and GCash.
Rizza Maniego-Eala, Globe’s chief finance officer, stated that Mynt’s proficiency in digital technology will positively impact ECPay and unlock its potential. Additionally, GCash will be able to set itself apart from other mobile wallets as the market becomes saturated. With Mynt managing ECPay, Globe will have better control over its ventures and can foster growth across the entire Globe Group ecosystem.
ECPay is an electronic payment service provider established in 2001. Its platform allows its partners to process bills payments, online shopping and credit card payments, as well as e-wallet and cash card reloading. ECPay was acquired by Globe in 2019.
On Monday, the stocks of Globe at the local stock exchange increased by P7 or 0.39%, reaching a closing price of P1,800 per share.