Aboitiz Equity buys 51% stake in remittance firm

Aboitiz Equity Ventures Inc. (AEV) has acquired a 51 percent stake in PETNET Inc., the largest Western Union agent network in the Philippines.

 

The acquisition of the remittance business was done through the purchase of issued shares and subscription to unissued shares.

 

“PETNET has a large growth and development potential with the continued increase in remittances from OFWs and with a large opportunity to distribute complementary products through an extensive network of outlets," said Erramon I. Aboitiz, AEV president and CEO.

 

“The market for money transfers is a very fragmented market and we see that AEV can add value in PETNET’s strategy to grow and potentially consolidate the market organically. 

 

"We are also open to potential add-on acquisitions, should it fit strategically,” Aboitiz added.

 

Remittances constituted around 8 percent of the Philippine gross domestic product last year and have grown by around 7 percent per year for the past couple of years, according to AEV.

 

PETNET with its current management team will continue as a stand-alone business of the Aboitiz Group.

 

“It is our intention to act as a very active owner from a board level perspective, but PETNET will continue to be a self-driven unit,” Aboitiz noted.

 

"PETNET has reached a growth stage where it needs to take some big steps, both internally and externally, and we think that AEV is the right active owner to support this development," PETNET CEO Larry Ocampo said. – VS, GMA News