Following the approval of its share-swap transaction, DITO CME Holdings, Inc. stated on Tuesday that it would reduce its foreign ownership limit from 100% to 40%.
DITO CME, a holding company run by Dennis A. Uy, gained approval from the Securities and Exchange Commission on Aug. 27 to enhance its authorized capital stock from P2.8 billion to P40 billion.
“The increase in DITO CME’s authorized capital stock was paid for through a share-swap transaction with Udenna Corp., in which Udenna subscribed to 11.20 billion common shares in the company in exchange for Udenna’s 10 million common shares in Udenna Communications, Media and Entertainment Holdings Corp. (Udenna CME),” the listed company said in a stock exchange disclosure on Tuesday.
Udenna CME owns a stake in Udenna Corp.’s telecommunications company.
“With Udenna CME’s 100 percent ownership, the firm has become the ultimate parent company of DITO Telecommunity Corp., a corporation that operates as a telecommunications service provider,” it added.
The Public Service Law requires a 60-40 balance of telecommunications business ownership between Filipinos and foreigners.
“As a result of the approval of the share-swap transaction, the firm shall change its foreign ownership limit from 100% to 40% in accordance with the above-mentioned statute,” DITO CME stated.
DITO CME’s attributable net income fell 70.8 percent to P8.1 million in the second quarter due to rising expenses. The company’s expenses for the quarter increased to P18.6 million, up from P555,877 in the same time the previous year.
DITO CME’s attributable net income fell 70.5 percent in the first half of the year to P16.3 million, compared to P55.3 million in 2020.
On Tuesday, DITO CME shares closed 0.27 percent higher at P7.54 per share.
Source: BusinessWorld