ABS-CBN Corporation has sold the majority of its stake in its Fintech company U-Pay Digital Technologies Inc.
According to the disclosure at the Philippine Stocks Exchange, Greenergy said it has signed an agreement with ABS-CBN and iBayad Online Ventures, Inc. for the acquisition of 51 million fully paid common shares of U-Pay Digital amounting to 54 million pesos which is equivalent to 51% of the current capital stock of U-Pay.
“Under the Term Sheet, the execution of the definitive agreements is conditioned on a satisfactory legal, financial and environmental, social and governance due diligence by GHI. GHI is given forty-five (45) days from execution of the Term Sheet within which to complete the due diligence,” Greenergy said in its disclosure.
U-Pay is a joint venture company between ABS-CBN and iBayad.
U-Pay “provides e-commerce and digital payments services, and is duly registered to operate as a remittance and transfer company” according to its website.
ABS-CBN has been losing so much financially following the shutdown of its free-TV broadcast in May 2020.
The big blow followed with the rejection of its franchise application on July 10, 2020, after 70 Cayetano-led congressmen voted to deny their application.
ABS-CBN’s shutdown has also resulted in the massive lay-off of its employees and closure of some of its business units which include FM station MOR, AM radio station DZMM and many others.
Currently, ABS-CBN shows are airing through its cable channel Kapamilya Channel and AZ2 Channel 11 and TV5 through block time agreements.