telecommunications companies

Dito CME gets SEC nod for share-swap deal

Aika Rey

BUSINESSMAN. Dennis Uy, chairman of Dito CME.

Rappler

Dito CME says it received the 'effective approval' of the Securities and Exchange Commission for the share-swap deal which facilitates the backdoor listing of Dito Telecommunity

Dennis Uy-led Dito CME Holdings on Tuesday, August 31, said that its share-swap application for the backdoor listing of Dito Telecommunity has been approved by the Securities and Exchange Commission (SEC).

In a disclosure to the local bourse, Dito CME said it received the certificate of approval from the SEC last Friday, August 27, which green-lights the increase in its capital stock to 40 billion shares.

It said that the approval covers the amendment of its articles of incorporation and the “effective approval” of the share-swap deal with Udenna Corporation’s Udenna Communications Media and Entertainment (Udenna CME).

“The share-swap was executed on November 11, 2020, but the approval of the SEC was received by Dito CME on August 27, 2021,” Dito CME said on Tuesday.

Dito CME and Udenna CME will still need the approval of the Philippine Stock Exchange to finalize the deal.

In November 2020, Dito CME entered into a P77-billion share-swap deal with Udenna Corporation to become the controlling shareholder of Dito Telecommunity.

Dito CME will acquire 100% of Udenna CME from Udenna Corporation, in exchange for 11.2 billion Dito CME shares. Udenna CME is the holding company that has an indirect interest in the third telco player.

The share-swap deal will result in Dito CME having a 53.46% indirect stake in Dito Telecommunity.

Dito Telecommunity launched commercially in March. On August 1, the third telco player said it already has 2 million subscribers, just a month and a half after it went past 1 million.

On Tuesday, Dito CME shares closed 3.26% lower at P8.32 apiece. – Rappler.com

Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.