Politics

Greenergy seals investment in ABS-CBN’s U-Pay

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ABS-CBN Corp. announced on Monday that it executed a share purchase deal with Greenergy Holdings, Inc. for its acquisition of the media company’s 51 million shares of stock in e-money issuer and remittance firm U-Pay Digital Technologies, Inc.

“ABS-CBN… informs the investing public that the parties have executed the share purchase agreement today for (Greenergy Holdings’) acquisition of ABS-CBN’s 51 million shares of stock in U-Pay Digital Technologies with a par value of P1 per share, at a price of its total par value of P51 million,” the listed media company said in a disclosure to the stock exchange.

ABS-CBN added that there is also a payment of “additional consideration of P3 million for disbursement of fees and charges due on U-Pay’s governmental permits and licenses, reimbursement for the pre-operating expenses advanced by the media company to U-Pay, and assignment to U-Pay of ABS-CBN’s rights and interests to the marks and all other intellectual property rights [it] created and developed.”

The media company said the closing date of the transaction is subject to the completion of certain conditions precedent to closing, including the issuance by the Bangko Sentral ng Pilipinas (BSP) of a letter of no objection to the acquisition of the shares, which should not be later than Sept. 30.

In a separate disclosure, Greenergy Holdings said its board of directors approved the company’s move to enter into a share purchase agreement with ABS-CBN, “which would result in the company owning 51% of the outstanding capital stock of U-Pay.”

“U-Pay is a fintech company engaged in the business of customer and merchant e-wallet/e-money services and other related services, operating a platform therefore, as well as advertising, producing, distributing, and marketing products and services that are connected to the operations of said business,” Greenergy Holdings said.

The listed holding company also said U-Pay has an e-money issuer license issued by the BSP and is registered to operate as a remittance and transfer company.

On Monday, shares in ABS-CBN inched up by 0.54% or six centavos to P11.22 each, while those of Greenergy Holdings rose 2.99% or seven centavos to P2.41 apiece. — Arjay L. Balinbin

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