Tencent and KKR Make $ 175 Million Investment in PLDT's Voyager Program

By Denise A. Valdez, Journalist

CHINA TECHNOLOGY COMPANY Tencent Holdings Ltd. and investment firm Kohlberg Kravis Roberts Co. (KKR) on Wednesday completed their $ 175 million investment in Voyager Innovations, Inc., according to PLDT, Inc.

The chairman, CEO and chairman of PLDT, Manuel V. Pangilinan, said the company was aiming to close the $ 40 million investment in Voyager's sister company the World Bank International Finance Corp. (IFC) and the IFC Emerging Asia Fund in the next two weeks.

"The money today was $ 175 million. I think IFC is December 10 for $ 40 million. That should complete $ 215 million. That's all for the financing of Series A, "Pangilinan told reporters Wednesday in Makati.

He pointed out that additional B-Series funds should be mobilized after two years, but that the $ 215 million should be sufficient to develop the Voyager system in the meantime.

"We are looking at the business plan. They will do it. The size of the business will expand over the next two years … I think we have enough cash to fund the next two or three years, but then, from the third to the fourth year, we're going to collect a little more, series B, says Mr. Pangilinan.

After the financial close, PLDT's stake in Voyager would be reduced to 48%, but would remain the largest shareholder of the technology company.

Mr. Pangilinan expects new investments to help PLDT reduce its losses due to Voyager, which rose to 800 million pesetas over nine months, against 800 million in the same period last year.

"Let's hope that the level of losses we are recovering will be much lower. But again, it depends on the level of losses they will achieve next year and in 2020, "he said.

In its statement to the stock exchange, PLDT quoted Voyager's president, Orlando B. Vea, as saying: "We believe investors like KKR and Tencent are leading the way, profiling the Philippines as a destination for investment in technology. is increasing."

Although Tencent and KKR sit on Voyager's board, Pangilinan said IFC and IFC Emerging Asia Fund would be granted observer status.

"They will have some observance on the board. They are not entitled to a seat on the board, given the importance of the investments of Tencent and KKR. They are two main investors … We have to respect some governance issues, because that's the way it is. They are a supranational institution. We expect them to be active on the board, "he said.

Voyager is the digital innovations branch of PLDT, which manages the mobile wallet PayMaya Philippines, Inc., the Smart Padala mobile payment brand, the Lendr online loan platform and the Freenet free navigation app.

Hastings Holdings, Inc., a unit of MediaQuest Holdings, Inc., a subsidiary of the PLDT Beneficial Trust, has a controlling interest in Business world through the Philippine Star Group, which he controls.