Agrinurture Inc. (ANI), the agribusiness arm of businessman Antonio Tiu, said it has signed a deal with a unit of DFNN Inc., for the acquisition of shares in one of its financial platforms via a share-swap transaction.
In its disclosure to the Philippine Stock Exchange, ANI said it is acquiring 51 percent of Pay8 Inc.’s authorized capital stock after increasing its capitalization, through a share swap.
Based on current valuation, the deal is valued at P377.91 million, but is still subject to ANI’s due diligence, the company said.
“The intended acquisition is part of completing the agricultural ecosystem being envisioned by ANI. The financial platform that will be introduced is anticipated to reach the farmers mostly in the unserved rural areas of the country,” ANI said.
Pay8 is majority owned by Hatchasia Inc., which in turn is owned by DFNN, a company that supplies software and technology to many gambling firms and also runs its own gambling joints.
Hatchasia and Pay8 are companies primarily engaged in the business of information and technology that provides multiple systems and platforms to various industries, DFNN said in a separate disclosure.
“The financial platform that will be introduced is anticipated to reach the farmers mostly in the unserved rural areas of the country and is targeted to have a major impact in the drive for financial inclusion of the much-neglected banking requirements of our agribusiness sector by enabling farmers, producers, distributors and end users to make cashless payments within its closed looped ecosystem,” DFNN said.
“More importantly, this platform should address the steady decline in revenue of the agricultural sector by providing much needed access to financial services.”
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, the agribusiness company will swap its shares of equivalent value based on a P12 per share valuation of ANI shares.
It will also acquire of up to 24.5 million shares or 20 percent of the shares of Hatchasia at P5 apiece.
“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. This acquisition will not be a cash-basis transaction,” it said.
ANI said technology will play a big role in what it envisioned to create an agricultural ecosystem, in which accredited merchants where the farmers can purchase their farm inputs and other supplies, and the company has the option to buy the produce. The company aims to integrate other suppliers and buyers in the ecosystem.
A platform will be set up wherein orders and payments will be facilitated.