DFNN Inc. said it has sold to agri-trade firm Agrinurture Inc. (ANI) a 51 percent of unit Pay8 Inc., through a share-swap deal.
The transaction will give ANI a payment platform that will be introduced to farmers mostly in the unserved rural areas of the country.
The platform is seen to have a major impact in the drive for financial inclusion of the much neglected banking requirements of our agri- business sector by enabling farmers, producers, distributors and end users to make cashless payments within its closed looped ecosystem, according to DFNN.
“More importantly, this platform should address the steady decline in revenue of the agricultural sector by providing much needed access to financial services,” it said.
Pay8 is a majority-owned unit by DFNN unit Hatchasia Inc. Hatchasia and Pay8 are primarily engaged in the business of information and technology that provides multiple systems ad platforms to various industries.
Under the agreement, ANI will buy up to 71 million common shares of Pay8 after it effected an increase in its authorized capital stock to P141.12 million from P100 million at par value of P1.
In return, ANI will exchange its shares at a share-swap price of P12 per ANI shares. ANI will also acquire up to 24.5 million shares Hatchasia at P5 apiece, equivalent to 20 percent of the latter.
“The intended acquisition of shares in Hatchasia, Inc. will give the company participation in the management of Pay8 Inc.’s parent company to ensure alignment,” ANI said.
ANI said the acquisition will help the company play a big role in the creation of an agricultural ecosystem, in which accredited merchants and farmers can trade goods andwhere orders and payments will be facilitated.
“The company wants to reach the farthest rural areas to maximize the opportunities for both the farmers and the company and to fully support the government’s agenda on boosting the agricultural sector,” the company said.
The transaction is estimated to be worth P377.91 million, subject to ANI’s due diligence.
