Philippines-listed Globe buys back 51% of content developer Yondu for $9.6m

A trader takes orders on a telephone at the Philippine Stock Exchange. Source: Reuters

Philippines-listed telecom giant Globe Telecom Incorporated on Wednesday announced that it is acquiring back 51 per cent of mobile content developer Yondu for 501.2 million pesos ($9.6 million) from Xurpas Inc.

Xurpas, a listed consumer technology firm, acquired the 51 per cent stake in Yondu from Globe in 2015 for 900 million pesos ($17 million). Yondu develops mobile content and provides mobile and information technology services.

Back then, Globe and Xurpas said they will transform Yondu into a regional arm for digital content distribution and other technology-driven services.

The company has since then evolved to become a top IT solutions company in the Philippines, expanding its product portfolio to provide managed services, software development, and turnkey solutions, among others.

In a disclosure to the Philippine Stock Exchange, Globe said Xurpas Inc. sold 22,950 common shares of Yondu Inc at a purchase price of 501 million pesos, which shall be payable in cash upon signing of the definitive documents.

Globe said the same level of discount applied in the 2015 transaction was again considered for this deal.

“Bringing Yondu into the Globe value chain will promote synergies and strengthen the position of our enterprise business. We believe in Yondu’s growth prospects as we leverage on its capabilities in a robust IT industry,” said Globe President and CEO Ernest Cu.

Globe said the transaction is consistent with its strategic imperative of developing its ICT capabilities responsive to the changing needs of its customers.

The sale comes as Xurpas said it trimmed losses in the first quarter of this year. The listed technology firm posted an attributable net loss of 70.61 million pesos ($1.3 million) in the January to March period, 6.6 per cent lower than its attributable net loss of 75.63 million pesos ($1.4 million) in the same period last year.

Xurpas is currently a party to content provider agreements with Smart Communications Inc., Globe Telecom Inc., and Sun Cellular. Aside from Yondu, its other subsidiaries are Xeleb Technologies Inc, Storm Technologies Inc, Seer Technologies Inc, and Xeleb Inc.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.