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||29 October 2009
Singtel unit gains control of Philippine IT firm
A unit of Singapore Telecommunications Inc. (Singtel) has acquired majority control of Ayala Systems Technology Inc, an information technology service company of the Ayala Group, gaining more access to the Philippines’ IT talent pool, reported the Philippine Daily Inquirer.
Ayala Corp disclosed Wednesday to the Philippine Stock Exchange that SCS Computer Systems Pte. Ltd. had purchased an additional 21 percent of the outstanding shares of Ayala Systems, hiking its stake to 51 percent.
Singtel’s unit bought 8.48 million additional Ayala Systems shares from the Ayala Group’s IT investment holding firm Azalea Technology Investments Inc. and partners BPI Computer Systems Corp. and Mitsubishi Corp. for a total of 7.2 million peso or 0.85 peso a share. (1$=48 peso)
The 21-year-old Ayala Systems is one of the fastest growing IT services companies in the country, specialising in offshore software development for companies in Japan, Europe, America and Australia.
SCS Computer Systems is a wholly owned subsidiary of Singtel’s NCS Pte Ltd. The deal will thus make Ayala Systems a subsidiary of NCS and SingTel.
Azalea may have trimmed its ownership in the company from 59 percent to 49 percent, but will remain a key strategic partner.
“The acquisition will provide NCS and SingTel access to a large labor pool that is highly competitive in pricing, but gives back excellent value in terms of the employees’ dedication to work, technical competence, learning and growth potential,” Ayala senior managing director Rufino Luis Manotok said in the disclosure.
“Ayala Systems’ experience in the outsourcing and offshoring industry will be the platform for NCS and SingTel to penetrate overseas markets,” he stressed.
NCS is the eighth largest information and communications technology service provider in Asia-Pacific outside Japan. It is present in more than 10 countries across the Asia-Pacific and Middle East, employing over 7,000 people.
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