Premiere Horizon receives third initial payment for stake sold to SquidPay

PREMIERE Horizon Alliance Corp. has received the third preliminary payment worth P100 million from fintech (financial technology) firm SquidPay Technology, Inc.

On Wednesday, Premiere Horizon disclosed to the exchange that payments for the initial cash investment of P300 million for 55% of the company’s ownership had been completed by an investor group led by businessman Marvin C. Dela Cruz.

The investor group has a balance of P625 million.

Premiere Horizon will be using the initial payment of P300 million to fund its operations in mining, real estate, and tourism. The company will also be using it to pay its debt and liabilities, taxes, licenses, and operating expenses.

Premiere Horizon will also file for an increase in authorized capital stock of P936.4 million for 3.745 billion shares, amounting to 6 billion shares with a par value of P0.25.

Mr. Dela Cruz’s investor group has subscribed to 2.54 billion partially paid shares. The 303 million shares subscribed by existing creditors will also be included in the filing for capital increase.

In November last year, Premiere Horizon disclosed that it would sell 2.8 billion of its shares or 55% to the investor group. Shares then amounted to P0.33 apiece, allowing it to earn P925 million.

The remaining P625 million due will be settled through cash and infusion of SquidPay shares over the next two years, effectively making the fintech company a Premiere Horizon subsidiary.

Premiere Horizon shares at the stock exchange rose by 6.46% or 0.19 centavos to close at P3.13 each on Wednesday.

Kaycee G. Valmonte, BusinessWorld / February 11, 2021

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