Meralco to raise P2.7 billion from Bayad sale

MANILA, Philippines — Power giant Manila Electric Co. (Meralco) is set to raise P2.7 billion from the sale of CIS Bayad Center Inc., enabling its joint venture with PLDT Inc. and Metro Pacific Investments Corp. (MPIC) to take over the payment platform.

Meralco and its subsidiary Corporate Information Solutions Inc. (CIS) have agreed to sell their respective stake in Bayad to Kayana Solutions Inc., involving 504,948 common shares valued at P5,347.08 apiece.

CIS holds 476,895 common shares, while Meralco owns the remaining 28,053 shares in the transaction.

“Payments is a pillar of the digital experience, and Kayana has the capability and is committed to improving digital experience in the Philippines through its data-driven solutions,” Meralco said in a disclosure yesterday.

Kayana, a digital company owned by Meralco, PLDT and MPIC, is expected to enable Bayad to accommodate more transactions and customers.

The deal’s closing is subject to the satisfaction of certain conditions precedent, including clearance from pertinent regulatory agencies.

Bayad offers payment collection services through its physical and digital payment touchpoints.

Currently, Meralco, CIS and Kayana have equity interests of five percent, 85 percent and 10 percent, respectively, in Bayad.

After the transaction, the payment platform will be an associate of Meralco, with a 27.5-percent indirect interest through Kayana.

Meralco, the country’s largest power utility, provides electric service to more than eight million customers in Metro Manila and nearby provinces.