I-Remit attains full control of Worldwide ExchangeDate Posted: 2011-04-01
By Doris Dumlao
Philippine Daily Inquirer
First Posted 19:34:00 03/28/2011
MANILA, PhilippinesóCash transfer firm I-Remit Inc. is taking full control of Worldwide Exchange Pty Ltd., a remittance unit in Australia by buying out a 35 percent stake held by individual minority investors.
In a disclosure to the Philippine Stock Exchange on Monday, iRemit said its board of directors had approved the company`s acquisition of the shares in WEPL held by Leticia Yap Tay (20 percent), Banlee Co Choa (10 percent) and Johnny Sy (5 percent).
The total price consideration for the transaction was $274,345 Australian dollars (roughly P12.3 million), payment for which would be sourced from internally generated funds, I-Remit president Harris Jacildo said.
WEPL, which was incorporated in 2003, is engaged in the remittance business in Australia. It operates branches in Blacktown, New South Wales and Perth, Western Australia. It is capitalized at $100,000 Australian dollars (P4.47 million).
Prior to the new acquisition, the corporation directly owned 35 percent of WEPL`s capital stock and held 30 percent indirectly through another subsidiary I-remit Australia Pty Ltd.
"Thus with the new acquisition, the corporation will own directly 70 percent and indirectly 30 percent of WEPL," I-Remit said.
I-Remit, which caters to the remittance needs of overseas Filipino workers, also offers auxiliary services such as liaison and coordination work, and accepting and distributing membership contributions, loan amortization payments, and premium payments to various government and non-government entities such as the Social Security System, the Home Development Mutual Fund, and the Philippine Health Insurance Corporation as well as various insurance, pre-need and real estate companies.
I-Remit had P1.8 billion in assets as of the end of September in 2010. As of Monday`s closing price of P3.15 per share, it had a market capitalization of around P1.74 billion.