Manila Electric Co. (Meralco) is set to raise P2.7 billion by selling its stake in the payment platform Bayad following a strategic pullback from direct exposure to the fintech space and a shift toward consolidating the business under Kayana Solutions, Inc.

In a more detailed disclosure on Tuesday, Meralco said it, along with its wholly owned subsidiary, Corporate Information Solutions, Inc. (CIS), agreed to sell a combined 504,948 common shares, equivalent to 90 percent of Bayad, at P5,347.08 per share to Kayana. 

Under the agreement, Kayana will acquire 476,895 shares from CIS and 28,053 shares from Meralco, effectively taking full control of the platform.

The total transaction value was determined using a discounted cash flow valuation and will be paid in full upon closing.

The deal, approved by Meralco’s board on 26 January, as well as by Kayana on 25 March and CIS on 7 April, remains subject to regulatory clearances and other conditions precedent, with the closing date yet to be finalized.

“Payments are a pillar of the digital experience, and Kayana has the capability and is committed to improve the digital experience in the Philippines through its data-driven solutions that will support and enhance the payment, collection, and digital platform of Bayad to accommodate more transactions and customer base,” Meralco said. 

Once completed, Bayad will no longer be a direct subsidiary of Meralco and will instead become an associate company, with Meralco retaining a 27.5 percent indirect stake through its ownership in Kayana.

Bayad, a provider of payment collection services offering a suite of financial products across physical and digital channels, is currently owned by CIS with 85 percent, Kayana with 10 percent, and Meralco with 5 percent. 

Kayana, a digital company focused on accelerating digital transformation in the Philippines, is backed by PLDT Inc. with 45 percent, Meralco with 27.5 percent, and Metro Pacific Investments Corp. with 27.5 percent.