Technology

Dennis Uy pumps in telco unit to Dito CME in P77B share swap deal, eyes commercial launch in March 2021

Bilyonaryo Dennis Uy is taking the final steps to finally list his telco unit through the backdoor.

Uy’s Dito CME Holdings has set the terms of its proposed shares swap with Udenna Communications Media and Entertainment (CME) Holding in a deal that could cost as much as P77.28 billion.

The Dito CME board approved the shares swap involving 11.2 million shares at P6 and P6.90 per share for 11.2 million shares with Udenna-Dito Telecommunity. Dito CME intends to execute the transaction documents before the end of 2020.

Trading of Dito’s shares was halted on November 10. Dito shares closed at P6.11 on November 11.

Uy, who is chairman of both Dito CME and Dito Telecommunity, said : “We want to deliver on the expectations of our shareholders and the investing public, thus we don’t want to make promises that we can’t keep. Our principal and immediate mission is to ensure the commercial launch of Dito Telecommunity by March next year. ”

After the shares swap, Dito CME will end up as the beneficial owner of the Udenna Group’s equity interests in Dito Telecommunity, excluding those under Chelsea Logistics and Infrastructure, another holding firm of Uy.

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