Davao-based businessman Dennis Uy is reportedly progressing plans to finalise the transfer of DITO Telecommunity to publicly listed DITO CME Holdings. The Philippine Daily Inquirer cites a stock market filing on 1 September in which it notes that the Securities and Exchange Commission (SEC) approved its application for a capital increase on 27 August. The paper notes that the SEC’s green light allows DITO CME Holdings to complete a previously announced asset swap deal with affiliate Udenna Corp, which ‘controls DITO Telecommunity through layers of companies’. As such, DITO CME will issue 11.2 billion new shares to Udenna for 100% of Udenna Communications Media and Entertainment Holdings (Udenna CME). This will give DITO CME an indirect majority stake in DITO Telecommunity.
Previously, in November 2020 DITO CME Holdings moved to acquire Udenna CME through a share swap deal valued at up to PHP77 billion (USD1.54 billion), as it looks to take greater control of DITO Telecommunity. In a statement, DITO CME Holdings confirmed plans to purchase 100% of Udenna CME from Udenna Corp, in exchange for 11.2 billion DITO Holding shares issued at between PHP6.00 and PHP6.90. ‘Powered by the share swap merger’, DITO Holdings will ‘absorb and have an indirect hold’ in the country’s new third telco through Udenna CME, it said at the time.
Udenna CME holds 58% of privately owned DITO Holdings, the company purchasing DITO Telecommunity shares from Udenna Corp. The merger acquisition will reportedly ‘transform DITO CME from a shell company to a telco-focused holding firm’.
DITO Telecommunity, a venture between Uy and China Telecom, formally launched commercial services in Mindanao and Visayas on 8 March and reached Metro Manila in May.