Globe Fintech Innovations Inc. (Mynt) has fully acquired Electronic Commerce Payments Inc. (ECPay) for roughly P3 billion, Globe Telecom Inc. said on Monday.
In a disclosure to the stock exchange, Globe said it sold its 77-percent stake in ECPay to Mynt for P2.31 billion.
It also announced that the minority stakeholder, Payment One Inc., sold its 23-percent shareholding in ECPay to Mynt. Based on the BusinessMirror’s estimates, this transaction amounts to some P700 million, bringing the total transaction to about P3 billion.
Globe’s sale of its shareholding in ECPay to Mynt allows it to “harmonize its payments-related businesses.”
“GCash’s meteoric rise to become one of the top fintech brands and the aggressive expansion of its financial services has created a perfect environment for strategic synergies with ECPay,” Globe President Ernest L. Cu said.
“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.”
Upon closing of the transaction, ECPay will have access to GCash’s platform, enabling ECPay to better traverse the ever-evolving digital financial landscape.
As for Mynt, it is expected to 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.”
“Mynt’s digital savviness will spill over to ECPay, maximizing its previously untapped potential. GCash can further differentiate itself from its competition as mobile wallets in various shapes and sizes continue to pop up. With ECPay in Mynt’s capable hands, Globe can better steer its ventures and synergistically grow the entire Globe Group ecosystem,” Globe CFO Rizza Maniego-Eala said.
ECPay, incorporated in 2011, is an electronic payment service provider that was acquired by Globe in 2019 to enhance its distribution network. The platform enables 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.
The disclosure mentioned that the deal is currently “undergoing thorough reviews” and that “completion is expected upon receipt of approvals from the relevant regulatory bodies and satisfaction of closing conditions.”
When asked whether the transaction has to undergo a review under the Philippine Competition Act (PCA), a Globe representative replied: “Yes, the transaction is subject to regulatory approval.”
Under current regulations, the Philippine Competition Commission requires parties to notify the antitrust body for mandatory review of “mergers and acquisitions that breach a Size of Party [SoP] of P7 billion and a Size of Transaction [SoT] of P2.9 billion.”
SoP refers to the value of assets or revenues of the Ultimate Parent Entity of either transacting entity, while SoT refers to the value of assets or revenues of the acquired party and the entities it controls.