DITO CME Holdings Corp.’s board of directors has approved potential investment from Summit Telco Corp. Pte. Ltd., the listed holding company of DITO Telecommunity Corp. said.
In a stock exchange disclosure on Monday, DITO CME said it had executed a subscription framework agreement for Summit Telco, an existing shareholder of DITO CME, to subscribe to up to nine billion primary common shares, pending execution of subscription agreements.
“The implementation of Summit Telco’s potential investment under the Subscription Framework Agreement, along with other equity-raising efforts, forms part of the Company’s business plan to improve its equity positions as previously disclosed,” the company said.
With this, the company said its board of directors also authorized DITO CME Chairman Dennis A. Uy and President Donald Patrick L. Lim to fix, negotiate, and finalize the terms of the investment.
Its top executives were also authorized to negotiate and finalize the final amounts, timing, and tranches of the subscription and sign necessary agreements for the investments, DITO CME said.
In 2023, Summit Telco’s wholly owned unit Summit Telco Holdings Corp. entered into a subscription with DITO CME for P3.3 billion, allowing the issuance of 3.3 billion common shares to the company priced at P1 each.
Summit Telco accounts for 8.14% of DITO CME’s outstanding shares, with Summit Telco Holdings accounting for 16.89% of shares and Udenna Corp. holding 54.77% of DITO CME’s outstanding shares.
In August, the company announced its plan to raise up to P40.26 billion through funding from private investors over the coming five years to improve its financial standing and support its growth.
At the stock exchange on Monday, shares in DITO CME gained 13 centavos or 7.34% to end at P1.90 apiece. — Ashley Erika O. Jose