Xurpas sells back Yondu to Globe at a whopping loss
Technology firm Xurpas, which skyrocketed in its listing debut, is selling back 51% of Yondu Inc. to Globe at a loss of P399 million.
In a regulatory filing, Xurpas said Globe was retaking full control of Yondu with the purchase of 22,950 shares in the latter for P501million.
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 for P900 million.
Xurpas said the divestment of Yondu was line with its restructuring program as it struggles to stay afloat
“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,” said Xurpas president Alexander Corpuz.
Xurpas has been wallowing in the red due to lower revenues and losses incurred by some of its subsidiaries, forcing it to implement a management revamp, It suffered a loss of P812 million last year, a reversal of the the P103 million profit recorded in 2017, which included impairment losses and a write-down in one of its overseas subsidiaries.
Fort the first half this year, the company incurred P115.36 million worth of losses, down from the P143.65 million reported a year ago.
Xurpas said the sale of Yondu would have an impact on its financial position considering that substantial revenues of the group comes from Yondu.
It also announced the dissolution of subsidiaries Xeleb Technologies Inc. and Xeleb Inc. which were engaged in the business of developing and distributing celebrity themed mobile games.