DITO CME sells minority stake in unit to fund DITO Telecommunity

DITO CME Holdings Corp. said Thursday it raised P2.24 billion for the funding requirements of DITO Telecommunity Corp., the third telecommunications company in the country that is owned by Davao businessman Dennis Uy.

DITO CME, the listed company holding Uy’s investments in telecommunications, multimedia and information technology, said it raised the funds by selling 2.24 million shares in Dito Holdings Corp. to Summit Global Ltd., a company organized and existing under the laws of the Cayman Islands.

As a result of the shares purchase, Summit Global will own 18.5 percent of DITO Holdings and reduce DITO CME’s stake to 72.91 percent from 89.46 percent prior to the sale. DITO CME holds the stake in DITO Holdings via subsidiary Udenna Communication Media and Entertainment Holdings Corp.

DITO Holdings owns 60 percent of DITO Telecommunity.

“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,” the listed company told the Philippine Stock Exchange.

Just last month, DITO CME raised P2.2 billion from the sale of new but unlisted shares equivalent to a total of 13.55 percent of its expanded capital. The funds were also given to DITO Holdings.