Globe Telecom struck a deal to sell off its 77% stake in fintech company Electronic Commerce Payments (ECPay) to Mynt for PHP2.3 billion (US$40.7 million).
Mynt owns and operates the GCash financial services platform, it is a joint venture between Globe, Ant Group and Ayala Corporation.
In a statement, Globe Telecom president and CEO Ernest Cu said: "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.
"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 Mynt will have full control of ECPay as a minority stakeholder, Payment One, also joined the sale. It was not disclosed how many shares Payment One holds.
The deal is currently under review by relevant regulatory bodies and satisfactory closing conditions.
Globe acquired ECPay in 2019 to enhance its services such as enabling merchant partners to process bill payments, electronic top-ups, electronic pins, e-wallets and cashcard reloading, airline ticket purchases, online shopping payment, and credit card payment.
“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. With ECPay in Mynt’s capable hands, Globe can better steer its ventures and synergistically grow the entire Globe Group ecosystem,” added Globe Chief Finance Officer, Rizza Maniego-Eala.