By James A.Loyola
Xurpas, Inc., a technology firm that took the local stock market by storm upon going public, is getting rid of subsidiaries that have been bleeding its coffers as part of a restructuring program and to raise funds to pay maturing debt.
In several disclosures to the Philippine Stock Exchange, Xurpas said it has sold back its 51 percent shareholdings in Yondu, Inc. to Globe Telecom for P501 million in cash.
This will translate roughly to a P399-million loss since it acquired Yondu from Globe for P900 million four years ago. The resulting transaction means Yondu will once more be a wholly-owned subsidiary of Globe.
Yondu was a leading content developer and provider of mobile value-added services, and information technology services back in 2015 when it was acquired by Xurpas.
It has since then evolved to become a top IT solutions company in the Philippines, expanding its product portfolio to provide Managed Services, Software Development and Turnkey Solutions among others.
“Our divestiture of Yondu will provide the company additional liquidity, retires debt, and allows us to focus on high-value, emerging, innovative, and disruptive technologies and platforms impacting both enterprise and consumer commerce,” Xurpas President Alexander Corpuz said.
Xurpas said its financial condition will be materially affected considering that substantial revenues of the Group are attributed to Yondu’s performance.
“Regardless, Xurpas’ Management considers the sale strategic taking into account its ongoing corporate restructuring. Moreover, Xurpas Management considers the sale necessary taking into account Xurpas’ current financial condition,” the firm noted.
Meanwhile, Xurpas also announced the dissolution of Xeleb Technologies, Inc. and Xeleb, Inc. which were engaged in the business of developing and distributing celebrity themed mobile games, which forms part of Xurpas’ mobile consumer business.