DITO CME Holdings Corp. said Monday it secured board approval to sign an agreement with Singapore’s Summit Telco Corporation Pte. Ltd. to invest in the company.
The company disclosed to the Philippine Stock Exchange that its board authorized chairman Dennis Uy and president Donald Patrick Lim to finalize the investment terms, including amounts, timing, and tranches of the subscriptions. They are also authorized to sign necessary agreements, including subscription agreements.
DITO CME executed a subscription framework agreement allowing Summit Telco to subscribe to up to 9 billion primary common shares, subject to the execution of detailed subscription agreements.
Summit Telco, an existing shareholder of DITO CME, did not disclose the acquisition price. DITO CME’s stock closed at P1.77 on Oct. 31, 2024.
DITO CME said the potential investment, along with other equity raising efforts, aims to improve its equity position. The investment is subject to regulatory approvals from the Securities and Exchange Commission and the Philippine Stock Exchange.
DITO CME earlier targeted raising up to P40.26 billion until 2028 to address its negative equity position and fund expansion plans. As of end-2023, the company had raised P5.5 billion through private investments from Xterra Ventures, Pte Ltd., Summit Telco, and Summit Telco Holdings Corp.
DITO CME reported a total comprehensive loss of P19.56 billion in 2023, resulting in a capital deficiency of P35.37 billion. As of end-March 2024, the capital deficiency increased to P44.43 billion.
Summit Telco, in its website, said its investment in DITO CME aims to facilitate industry change and leverage data insights. The company seeks to expand its investments in telecommunications, digital platforms, media, analytics and digital infrastructure to generate returns for its investors.
