Listed agriculture company AgriNurture Inc. said it is acquiring a majority stake in information technology firm Pay8 Inc. for P377.9 million.
AgriNuture said in a disclosure to the stock exchange the acquisition was part of the group’s vision to launch borderless digital ecosystem that would empower the farm sector.
Under the plan, Agriculture will acquire up to 51 percent of Pay8’s authorized capital stock from DFNN subsidiary HatchAsia, after effecting the increase in its capitalization.
“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,” AgriNurture said.
Hatchasia Inc. and Pay 8 Inc. are companies primarily engaged in the business of Information and technology that provide multiple systems ad platforms to various industries. The deal is still subject to due diligence.
Following the disclosure, the Philippine Stock Exchange on Tuesday suspended the trading of AgriNurture, pending the submission of additional information on the transaction.
Prior to the trading suspension, share price of AgriNuture closed at P8.19 on Monday.
AgriNurture’s parent firm Earthright Holdings Inc. in January acquired a significant stake in a local rural bank to jumpstart the group’s plan to provide digital banking and microfinance lending services to Filipino farmers.
EHI purchased shares in Binangonan Rural Bank Inc. which owns one of the few electronic money issuer licenses issued by the Bangko Sentral ng Pilipinas.
Together with BRB, the company’s e-wallet can now be in sync with ATM cards of the bank and allows farmers to access cash anytime anywhere.
AgriNuture also planned to launch a full digital banking platform this year aimed at providing microfinancing to farmers.