The MVP Group’s key companies—PLDT Inc. (stock symbol: TEL), Meralco (stock symbol: MER), and Metro Pacific Investments Corp. (MPIC)—have recently reshuffled their stakes in their shared digital services subsidiary, DigiCo. This move marks a significant development in DigiCo’s ownership structure and future growth plans, especially in the digital payments landscape of the Philippines.
A Major Shift in Ownership Structure
In a transaction completed on September 30, 2024, PLDT, Meralco, and MPIC subscribed to a total of 570 million additional common shares in DigiCo, formerly known as Kayana Solutions Inc. Previously, PLDT held a controlling 60% stake in DigiCo, while Meralco and MPIC shared the remaining 40% equally. After this new subscription, PLDT’s stake has been reduced to 45%, while both Meralco and MPIC now hold 27.5% each. Despite the shift, PLDT retains majority control, and the changes are part of a larger strategy to expand the digital footprint of the MVP Group.
Revised Ownership Breakdown:
- PLDT: 45%
- Meralco: 27.5%
- MPIC: 27.5%
This move follows a series of acquisitions by DigiCo, which include investments in Bayad and Multipay, positioning it to strengthen its digital payment services.
Expanding into Digital Payments: Bayad and Multipay
One of the key areas of growth for DigiCo is the booming digital payment space. In August, DigiCo acquired a 10% stake in Bayad, Meralco's payment solutions subsidiary, for PHP 320 million. Bayad operates a vast network with over 800 outlets and 104,000 touchpoints, making it one of the largest bill payment platforms in the country. DigiCo aims to use its data resources to enhance Bayad’s capabilities and expand its reach further.
Key Acquisitions:
- Bayad: 10% stake acquired for PHP 320 million.
- Multipay: 100% acquisition for PHP 250 million.
Alongside Bayad, DigiCo also acquired full ownership of Multipay, an e-payment solution provider, from Multisys Technologies Corp., a subsidiary of PLDT Global Investments Holdings Inc., for PHP 250 million. These acquisitions are expected to improve both companies' ability to provide integrated payment solutions to consumers and partners alike. The combination of Bayad's offline solutions and Multipay’s digital prowess is seen as a crucial step in accelerating the shift toward digital payments in the Philippines.
Manuel V. Pangilinan, who chairs DigiCo, expressed confidence that these acquisitions will not only improve customer experience but will also play a pivotal role in driving the nation’s digital transformation.
Strategic Synergies Among MVP Group Companies
The investments in Bayad and Multipay are part of a broader strategy to create synergies across the MVP Group:
- Leveraging Data: DigiCo will use data from PLDT, Meralco, and MPIC to develop new consumer-based digital solutions.
- Integrated Services: By combining online and offline payment solutions through Bayad and Multipay, DigiCo is positioned to enhance the customer experience.
- Digital Transformation Push: These moves are aimed at accelerating the shift towards digital payments, an area of increasing importance for the group.
A Bigger Footprint in Telecommunications
In addition to expanding in the digital payments sector, PLDT has also made another significant investment in the telecommunications space by acquiring a 34.9% stake in Radius, a Meralco-owned telco, for PHP 2.12 billion. Radius provides fiber services to enterprise buildings and residential villages, which will complement PLDT’s already extensive fiber network that covers over 17 million homes.
With this investment, PLDT is poised to expand its market reach while gaining cost efficiencies by leveraging existing infrastructure and co-building efforts with Radius. This deal represents another example of how the MVP Group is working to solidify its position as a leader in the country’s digital and telecommunications industries.
Through these strategic share acquisitions and investments, the MVP Group, under the leadership of Manuel V. Pangilinan, continues to enhance its digital capabilities and maintain its competitive edge in both the telecommunications and digital payment sectors. DigiCo, with its growing portfolio of assets, is now better positioned to drive the digital transformation of the Philippines by offering consumers integrated online and offline solutions for financial transactions.