DigiCo announced on Monday separate agreements to purchase 10 percent of Bayad Center, owned by Manila Electric Co., and 100 percent of Multipay Corp., owned by PLDT Inc.’s Multisys Technologies Corp.
Big picture
The companies, part of the MVP Group, aim to unlock potential by spinning off their digital ventures to DigiCo, much like how the Ayala Group’s finance super app GCash has created substantial value.
This is an early step that could pave the way for larger deals.
The group has other prized assets in its portfolio, including telco and toll road payments via PLDT and Metro Pacific Tollways Corp., and the digital bank Maya, collectively serving millions of customers.
Analyst view
“I see a lot of promise in DigiCo, which can serve as a digital services hub for PLDT, Meralco, and (Metro Pacific Tollways). I would have liked to see Meralco fully divesting from Bayad and turning it over to DigiCo,” said Alfred Benjamin R. Garcia, AP Securities head of research.
At present, Meralco owns 95 percent of Bayad.
Garcia is also positive on the group consolidating payment and digital channels under DigiCo.
“They already created this digital entity to unify services for the MVP Group. They might as well go the whole mile and consolidate everything into it,” he added.
Management’s view
“Having both online and offline solutions, Bayad and Multipay are uniquely positioned to accelerate the country’s shift to digital payments. These companies will improve the payment experience for the Filipino consumer and provide partners with integrated solutions,” said Pangilinan, the chair of DigiCo.
The business is jointly owned by PLDT, Meralco, and infrastructure arm Metro Pacific Investments Corp.
Key details
Bayad is a bills payment provider that serves more than 800 utility, financial, and various billers with a network of more than 104,000 touchpoints nationwide. DigiCo’s acquisition of a minority interest in Bayad is subject to closing conditions.
Multipay has strong ties with various billers and digital payment channels, which are expected to enhance DigiCo’s payment platform. The deal will be finalized once all conditions are met.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
