DITO CME Holdings, Inc. announced on Tuesday that it would change its foreign ownership limit from 100% to 40% following the approval of its share-swap transaction.
DITO CME, a Dennis A. Uy-led holding firm, received on Aug. 27 the approval of the Securities and Exchange Commission of its increase in authorized capital stock from P2.8 billion to P40 billion.
“The increase in DITO CME’s authorized capital stock was paid through a share-swap transaction with Udenna Corp. where Udenna subscribed to 11.20 billion common shares in the company in exchange for Udenna’s 10 million common shares in Udenna Communications, Media and Entertainment Holdings Corp. (Udenna CME),” the listed company said in a disclosure to the stock exchange on Tuesday.
Udenna CME possesses Udenna Corp.’s shares in its telecommunications business.
“With the 100% ownership of the company of Udenna CME, the company has become the ultimate parent company of DITO Telecommunity Corp., a corporation operating as a telecommunications service provider,” it added.
The Public Service Law limits the ownership of telecommunications businesses to a 60-40 split between Filipinos and foreigners.
“Thus, pursuant to the approval of the share-swap transaction, the company shall change its foreign ownership limit from 100% to 40% in compliance with the above cited statute,” DITO CME said.
During the second quarter, DITO CME posted a 70.8% decline in its attributable net income to P8.1 million due to higher expenses. The company’s expenses for the quarter rose to P18.6 million from P555,877 in the same period a year ago.
For the first half of the year, DITO CME recorded a 70.5% decline in its attributable net income to P16.3 million against P55.3 million in 2020.
DITO CME shares closed 0.27% higher at P7.54 apiece on Tuesday. — Arjay L. Balinbin