Summit Telco poised to take majority of DITO

Summit Telco of Singapore is expected to soon become the biggest shareholder of DITO CME Holdings Inc. / summittelco.com

MANILA, Philippines – Singaporean firm Summit Telco Corp. Pte. Ltd. will soon become the biggest shareholder of DITO CME Holdings Inc. as its acquisition of an additional 9 billion shares in the company nears finalization.

DITO president and chief operating officer Donald Lim told the Inquirer this deal was likely to be completed within the first half.

The transaction is estimated to be worth P12.51 billion based on closing price on Tuesday. DITO shares fell by 0.71 percent to P1.39 each.

READ: PCC clears DITO deal that dilutes Dennis Uy’s stake

Once finalized, Summit Telco will emerge as the single largest shareholder of the listed telecommunications company.

Summit Telco, at present, 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 Singaporean companies’ combined stake in the company to nearly 49 percent.

On the other hand, the stake of Davao-based businessman Dennis Uy, who currently owns 54.77 percent of the company through Udenna Corp., will be diluted.

In February, the Philippine Competition Commission approved the transaction.

The company saw a change in its management ahead of the completion of the transaction.

Cherylyn Uy, wife of founder Uy, tendered her resignation as treasurer this month because of personal reasons but remains as director.

She is also currently serving as the corporate treasurer of Udenna Group of Companies, which includes Chelsea Shipping Corp.

DITO CME is targeting to achieve profitability by 2027 on the back of rising average spending per user as more Filipinos use mobile data for internet access.

This year, the company is set to spend about P15 billion to P20 billion to upgrade their services.