Dennis Uy’s company is completing the transfer of telecom startup Dito Telecommunity under the publicly traded Dito CME Holdings Corp.
Dito CME announced in a stock exchange statement on Wednesday that the Securities and Exchange Commission (SEC) authorized its capital expansion proposal on August 27. This would enable Dito CME to finalize a previously announced asset swap agreement with subsidiary Udenna Corp., which controls Dito Telecommunity through a series of businesses.
Dito CME will issue 11.2 billion new shares to Udenna in exchange for 100% ownership of Udenna Communications Media and Entertainment Holdings Corp. Dito CME will gain indirect majority ownership in Dito Telecommunity as a result of this transaction.
‘An unaffiliated third party.’
Aside from the shares issued to Udenna, Dito CME stated that it also allocated 35 million shares to a “unrelated third party.”
Following the trades, Dito CME stated that its public ownership level as of August 27 was 20.02 percent.
Dito CME had previously announced plans to execute a share sale via a rights offering. It has yet to provide any additional information on the subject.
Increased competition
On March 8, Dito Telecommunity, a joint venture between Uy and China Telecom, formally commenced commercial services in Mindanao and Visayas, with Metro Manila following in May.
It was granted a license in 2019 to become the country’s newest major telecoms provider as part of the Duterte administration’s efforts to increase competition in the telco industry.
The terms of the grant included a five-year commitment period that would terminate in 2024. During this time, Dito Telecommunity must cover 84 percent of the Philippine population and provide an average internet speed of 55 megabits per second.
Source: Business Inquirer