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MANILA, Philippines – The controlling shareholder of third telco Dito Telecommunity said that there have been “no definitive agreements” executed amid talks of a foreign buyout.
In a stock exchange filing on Tuesday, July 9, DITO CME Holdings issued a clarification amid a Philippine Star report that the company is set to sell a majority stake to Summit Telco Holdings Corporation. The Singapore-based company subscribed to P3.3 billion worth of shares of DITO CME last October 2023.
The STAR report cited a source as saying that Davao-based tycoon Dennis Uy, DITO CME chairman, “intends to keep a minority stake” in the company. Uy is currently chairman of the company.
DITO CME said: “In this regard, DITO CME Holdings Corp. wishes to clarify that there have been no definitive agreements that have been executed with respect to the majority takeover of DITO CME. The company will make the necessary disclosures and seek the appropriate regulatory approvals if such a transaction is executed, as required by the rules of the Securities and Exchange Commission and The Philippine Stock Exchange.”
This is not the first time that talks of another foreign entity taking over the third telco have been floated amid funding concerns.
The company continues to incur losses, bleeding P10 billion in the first quarter of 2024 amid building telco infrastructure.
Dito intends to break even by end-2025 and be profitable by 2026.
Shares of DITO CME surged nearly 8% during the morning trading session. – Rappler.com
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