DITO CME Holdings Inc. said Thursday it raised fresh funds to support the operations and expansion of its telecom unit.
The company said in a disclosure to the stock exchange subsidiary DITO Holdings Corp. issued 2.24 billion shares to Summit Global Ltd., an entity organized and existing under the laws of the Cayman Islands at P1 per share or a total of P2.4 billion.
DITO CME through subsidiary Udenna Communication Media and Entertainment Holdings Corp. owns 89.46 percent of DITO Holdings.
The issuance of new shares at DITO Holdings amounts to about 18.5 percent of its issued and outstanding capital stock. After the transaction, DITO will own 72.9 percent of DITO Holdings.
“The proceeds from such issuance of shares were used to fund the additional equity requirements of its operating subsidiary, Dito Telecommunity Corp. through the payment of subscription payables of DITO Holdings to Dito Telecommunity Corp.,” DITO CME said.
DITO CME sold 610 million shares to Xterra Ventures Ptd. Ltd. and 1.59 billion shares to Summit Telco Corp. Pte. Ltd. for P1 each.
DITO CME president Eric Alberto said the company aimed to “raise as much as investment to be able to fund critical project of ours.”
“As you know, the telco vertical is a very capital intensive industry and if we are to be true to our ambition to be a major enabler of digital services in the country, our first order of the day is for us to be able to raise the adequate funding,” he said.
DITO allotted P27 billion for 2023 capital expenditures.
