PCC clears DITO deal that dilutes Dennis Uy’s stake
Dennis Uy
The Philippine Competition Commission (PCC) gave its go-signal to the acquisition of additional 9 billion shares in DITO CME Holdings Corp. by Singaporean firm Summit Telco Corp. Pte. Ltd., a move that is seen to significantly shake up ownership structure in the company built by Davao-based businessman Dennis Uy.
In a disclosure on Friday, DITO CME said it had received a notification from the regulator via an email but yet to receive the official certification.
This transaction, based on the company’s latest closing price, is valued at P13.77 billion.
On Friday, DITO CME shares were flat at P1.53 each.
The operator of DITO Telecommunity, the country’s third telco player, first announced the planned stake acquisition in November last year.
Read: Singapore firm poised to take control of DITO CME
Once finalized, Summit is seen to emerge as the largest shareholder of the listed company.
At present, Summit Telco already has an 8.14-percent stake in the company, while its parent Summit Telco Holdings Corp. owns 16.89 percent.
China Bank Capital Corp. managing director Juan Paolo Colet previously said the subscription could boost the combined stake of the Singaporean companies to nearly 49 percent, while diluting the stake held by Uy, who currently owns 54.77 percent through Udenna Corp.
Colet earlier said the additional equity infusion “signals confidence in the telco’s prospects in the face of intense competition.”
DITO CME is seen on track to achieve profitability by 2027 as it projects a rise in average spending per user (ARPU) as more Filipinos use mobile data when accessing the internet.
Read: DITO CME on track to attain profitability.
As of end-2024, it was estimated that ARPU was about P120 per month for its 14 million subscribers—markedly higher than P9 million in 2023.
DITO CME chief financial officer Leo Venezuela previously said the company was set to spend about P15 billion to P20 billion this year to focus on “quality” of their services after ramping up population coverage.
According to a study by First Metro Securities Brokerage Corp. and DBS, DITO Tel has the advantage to capture the 5G market given that it holds majority of the country’s spectrum for the technology that supports quicker internet connection.
Based on National Telecommunications Commission data, DITO Tel has a total of 140 megahertz (MHz) of 5G spectrum. Competitors Globe and PLDT only have 60 MHz each. The 5G technology enables download rates of more than 10 gigabits per second, which is 100 times quicker than 4G.
