Globe Telecom Inc. is reacquiring a controlling stake in an information technology (IT) company in line with its plan to improve its services.
In a disclosure to the stock exchange on Wednesday, Globe said it bought back 22,950 shares in Yondu Inc. from Xurpas Inc. at a price of P21,841.03 apiece, for a total of P501.25 million. This is equivalent to 51 percent of Yondu’s total outstanding stock.
Globe will pay the total amount upon the execution of the deed of sale and definitive documents.
“The transaction is consistent with Globe’s strategic imperative of developing its ICT (information and communications technology) capabilities responsive to the changing needs of its customers,” Globe said.
“Yondu’s strong IT core competencies combined with Globe’s digital expertise will strengthen the value proposition of products and services catered to enterprise clients,” it added.
In a separate filing, Xurpas said proceeds from the sale will be used to repay maturing debt obligations and fund other corporate purposes.
The sale of the subsidiary was also seen to affect Xurpas’ financial standing considering that a substantial amount of its revenue is attributed to Yondu’s performance.
“Our divestiture of Yondu will provide the company additional liquidity, retires debt, and allows us to focus on high-value, emerging, innovative, and disruptive technologies and platforms impacting both enterprise and consumer commerce,” Xurpas president Alexander Corpuz said.
“Xurpas’ management considers the sale strategic taking into account its ongoing corporate restructuring. Moreover, Xurpas Management considers the sale necessary taking into account Xurpas’ current financial condition,” the firm added.