Davao tycoon Dennis A. Uy’s DITO CME Holdings Corporation has raised P2.24 billion through the issuance of shares of a subsidiary to a firm established in the Cayman Islands.
In a disclosure to the Philippine Stock Exchange (PSE), DITO CME said its subsidiary DITO Holdings Corporation has issued 2.24 billion shares to Summit Global Ltd., an entity organized and existing under the laws of the Cayman Islands, at a consideration of P1.00 per share.
DITO Holdings is a corporation that is 89.46 percent owned by DITO CME though its subsidiary Udenna Communication Media and Entertainment Holdings Corporation.
The issuance of new shares at DITO Holdings amounts to approximately 18.5 percent of its issued and outstanding capital stock. After such issuance, DITO CME said it shall own 72.91 percent of DITO Holdings.
“With regard to the effect of the issuance of shares on the business and financials of the Company, the proceeds from such issuance of shares were used to fund the additional equity requirements of its operating subsidiary, Dito Telecommunity Corp. through the payment of subscription payables of DITO Holdings to Dito Telecommunity Corp.,” DITO CME said.
This comes after DITO CME sold shares equivalent to 13.55 percent of its outstanding capital worth P2.2 billion to two firms that have been recently registered in Singapore.
DITO CME said 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 frim 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 August 17, 2023, it has complied with all the applicable requirements for the listing of these shares.