Dito reveals buyers of P2.2-B new shares

Davao tycoon Dennis A. Uy’s telecommunications unit Dito CME Holdings Corporation has revealed that the identities of the two buyers of its P2.2 billion shares are two firms that have been recently registered in Singapore.

In a disclosure to the Philippine Stock Exchange, the buyer of P610 million worth of its shares is “unrelated third-party subscriber Xterra Ventures Pte. Ltd. at an issue price of P1.00 per share.”

A separate disclosure identified the buyer for P1.59 billion Dito common shares as Summit Telco Corporation Pte. Ltd., an unrelated third party subscriber also at an issue price of P1.00 per share.

The P2.2 billion worth of new unlisted shares are equivalent to a total of 13.55 percent of Dito’s expanded capital.

“The issue price was set at par value considering that the current book value per share of the Corporation is -P2.21 (as of the latest quarterly financials of 30 June 2023), and since the Corporation cannot issue new shares below par value of P1.00,” the firm explained.

It added that, “the net proceeds of the transaction shall be fully invested by the Corporation in its operating subsidiary, DITO Telecommunity Corporation, in compliance with the capital contribution commitments of DITO.”

Specifically, it will be used to support its operations for the roll-out of its telecommunications business, further improving quality of access and user experience as well as accelerating the take up of its FWA 5G and mobile postpaid product offerings.

“The subscription will have positive effect on DITO as it will be able to comply with its capital contribution commitments and since the proceeds of the transaction will support the operations of its subsidiary, DITO Telecommunity Corporation, for the roll-out of its telecommunications business,” the firm added.

In Aug. 26, 2021, Dito raised P280 million from the sale of shares meant to nudge up its public float to just above the bourse’s minimum requirement of 20 percent.

The firm said it has sold 35 million new common shares for P280 million or P8.00 per share to Loden Infra Technologies Ltd. 

Dito is having the 35 million shares listed as the PSE after noting that, as of Aug. 17, 2023, it has complied with all the applicable requirements for the listing of these shares.