Bilyonaryo Dennis Uy has pegged at P6.11 per share the strike price of the shares swap which would pave the way for the backdoor listing of the country’s third telco player, Dito Telecommunity.
This is at the lower end of the P6 to P6.90 price range which Uy had proposed in his takeover of publicly-listed shell company, Dito CME Holdings.
“The final issue price by Dito CME is P6.11 per share for a total issue consideration of P68,432,000,000.00. As previously disclosed, the share-swap transaction, the increase in authorized capital stock, and the issuance of 11,200,000,000 shares will be subject to the approval of the Securities and Exchange Commission,” Dito CME said.
Other shareholders of Dito CME will be diluted to 20 percent after the shares swap.
The shares swap will enable Dito CME to control 100 percent of Udenna CME which has the direct stake in Dito Holdings, Uy’s holding company which owns 60 percent of Dito Telecommunity (the remaining 40 percent is held by its partner, China Telecom).
Prior to the November 11 shares swap, Udenna CME also jacked up on the same day its stake in Dito Holdings from 58 percent to 89 percent or equivalent to 53.4 percent interest in Dito Telecommunity.
Under the agreement, Udenna CME subscribed to 7.379 billion shares of Dito Holdings at one peso per share.
This means Uy’s Chelsea Logistics, the other stakeholder in Dito Holdings, will only have 11 percent ownership in Dito Holdings or 6.6 percent in Dito Telecommunity.