In a disclosure made by Globe yesterday, the telecom company is buying all its shares in Xurpas, Inc. subsidiary again as it expects to benefit from the said business. Both of the companies announced that Globe is purchasing 51% or equivalent to 22,950 shares from Yondu, Inc., a subsidiary of Xurpass, Inc. This makes Globe the sole owner of the subsidiary for the second time. This transaction costs P501 million and the firm paid it in cash right after signing and accomplishing the Deed of Sale of Shares yesterday. Do you think Globe would benefit bigtime from this deal?
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It’s a big question. Why would Globe want to bring back Yondu shares when it gave up the ownership to Xurpas, Inc. last 2015? Well, Globe also disclosed the answer to that matter. The firm told the public that bringing Yondu into the chain of its businesses will boost synergies and strengthen the position of its businesses. Globe believes in the growth prospect of Yondu as it leverages on its capabilities in this strong industry of information technology. It can also be recalled that Xurpas, Inc. bought the 51% shares from Globe in 2015.
Yondu, Inc is a business that manages content development and offers mobile value-added services and information technology services. Its parent said that the business has grown that it already includes software development, service management, and turnkey solutions to its portfolio since Xurpas put money into this business 4 years ago. Compared to its position in 2015, Yondu’s divestment can now give Globe additional liquidity, a room to focus on high-value, retired debt, and emerging, innovative, and disruptive platforms and technologies. Years of investment indeed make a business grow into a better provider especially in the IT industry.
In general, the services offered by Yondu, Inc. can complement what Globe can give to its clients and other businesses. The transaction that happened between the two companies is consistent with the telecom firm’s strategic imperative of improving its ICT capabilities in response to the changing needs of its clients. The strong IT core competencies of Yondu, if combined with the digital expertise of Globe, can strengthen the value proposition of the products and service Globe can offer to is clients. Meanwhile, Xurpass is planning to close its other subsidiaries—Xeleb Technologies, Inc. and Xeleb, Inc. to cut those who are not contributive to the group.