Technology

Indirect ownership of 3rd telco: Dito CME shareholders to be diluted to 20% in P77B of backdoor listing of Dennis Uy

Dito CME shareholders will see their stake reduced to 20 percent under the proposed P77 billion backdoor listing of the third telco player controlled by bilyonaryo Dennis Uy.

Dito CME shareholders will see their stake reduced to 20 percent under the proposed P77 billion backdoor listing of the third telco player controlled by bilyonaryo Dennis Uy.

Dito CME made the clarification after unveiling its planned shares swap with Udenna Corp. involving 11.2 billion shares at a strike price between P6 and P6.90.

Udenna will own 80 percent of Dito CME after the shares swap. Dito CME do not have pre-emptive rights to match Udenna’s offer under its articles of incorporation.

Uy and his wife, Cherryl currently own 60 percent of Udenna and 32 percent of Dito CME, a shell company previously owned by bilyonaryo Bobby Ongpin. The other owners of Udenna are British Virgin Island firms Silver Crescent Global Limited (29.62 percent), and Elite First Investment Limited (10.38 percent).

Dito CME told the Philippine Stock Exchange that the shares swap would give it “value” as “it does not have have any operating subsidiary.” But Dito CME said it would not have “direct” ownership in Uy’s telco, Dito Telecommunity.

Uy has a 60 percent share in Dito Telecommunity (the remaining 40 percent owned by China Telecommunications Corp.) which he currently holds through Udenna Corp. (35 percent) and Chelsea Logistics and Infrastructure (25 percent).

Before Udenna and Dito CME execute their shares swap, Udenna will first consolidate its Dito Telecommunity stake under Udenna CME Holdings. After the shares swap, Udenna and Chelsea will then transfer their combined 60 percent share in Dito Telecommunity to another Uy holding firm, Dito Holdings. This means Dito CME will own the telco firm through Udenna CME and Dito Holdings.

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