DITO CME Holdings Corp. has taken a significant step towards enhancing its equity position by approving a resolution that allows the potential investment of Singapore-based Summit Telco Corporation Pte. Ltd.
Under the newly executed Subscription Framework Agreement, Summit Telco has the opportunity to subscribe to up to 9 billion primary common shares of DITO CME. At current market price, the shares are worth P16.65 billion.
The agreement sets the stage for the detailed subscription agreements that will outline the specific terms and conditions for the share issuance. The DITO CME board has authorized Davao-based businessman and company chairman, Dennis A. Uy, and company president Donald Patrick L. Lim, to negotiate and finalize the terms of the investment, which includes determining the amount, timing, and tranches of subscriptions, as well as signing any necessary agreements.
The potential investment from Summit Telco is part of DITO CME’s broader strategy to strengthen its equity position, as previously disclosed in its business plans. This move aligns with the company’s ongoing efforts to raise equity and enhance its financial stability amidst a competitive telecommunications landscape.
The deal is subject to regulatory approval, particularly by the Securities and Exchange Commission and the Philippine Stock Exchange.
