Western Union to Take Equity in Singapore Agent
The Western Union Company will take a 49 percent equity stake in its Singapore agent, Western Union Global Network (WUGN) – a subsidiary of Singapore-listed Hersing Corporation Ltd.
The acquisition is in line with Western Union’s stated strategy to take or increase equity stakes in key agents and continue to strengthen its global agent network.
Western Union’s current investment will be upgraded to ordinary shares. Western Union will now earn a pro rate share of profits of WUGN and enjoy enhanced voting rights. The deal also includes a long-term extension of WUGN’s representation agreement to offer Western Union money transfer services at more favorable commission rates. Under the terms of the agreement, Western Union is now able to explore additional agent relationships in Singapore.
Western Union entered the Singapore market with Hersing in 2001, and the business now boasts more than 60 locations throughout the country through Agents RHB Bank, American Express and SingPost. The city is home to the world’s largest Western Union flagship store at Lucky Plaza.
“Singapore, with its transient worker population, is a key market for growth for Western Union,” said Sunil Balagopal, regional vice president for South East Asia, Western Union. “This agreement reinforces our commitment to this market and strengthens our relationship with Hersing. We look forward to exploring more opportunities for innovation in providing money transfer services in Singapore.”
“Western Union’s money transfer service is trusted by millions of consumers globally to quickly and reliably send and receive money,” continued Balagopal. “We’re confident that this agreement will ensure that we can offer both consumers and Agents in Singapore the best possible service.”
