👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

DITO CME secures P3.3 billion in new capital for network expansion

EditorVenkatesh Jartarkar
Published 23-10-2023, 08:28 pm
© Reuters.
PSI
-

Philippine telecommunications company DITO CME Holdings Corp. has secured P3.3 billion ($65 million) in new capital through a share subscription agreement with Summit Telco Corp.'s Philippine entity. The board approved the issuance of 3.3 billion shares at P1 per share, providing a significant funding boost for DITO Telecommunity Corp.'s various initiatives.

The funds will be directed towards network expansion, improved access quality, and enhanced user experience, particularly in fixed wireless access 5G and mobile postpaid product offerings. This development follows DITO CME's expansion of its issued shares from 14.04 billion to 16.24 billion earlier this year, through transactions with Summit Telco Corp. and Xterra Ventures Pte. Ltd.

DITO CME Holdings Inc., the third-ranked telco in the Philippines owned by businessman Dennis Uy, raised the funds via private placement with Singapore-registered Summit Telco Holdings Corp. The company sold 3.3 billion new shares at P1 each, following previous transactions including the issuance of 3.88 billion shares to Summit Telco for P3.88 billion and sale of 610 million shares to Xterra Ventures Ptd. Ltd.

These funds, combined with a $3.9-billion loan facility from multinational banks, are expected to offset a $1.3 billion short-term bridge loan and finance DITO Telecom Corp.'s network expansion efforts despite high operating expenses that led to a net loss of P11.24 billion in 2022.

For 2023, the company has allocated lower capital expenditures amounting to P27 billion, compared to last year's P50 billion. Dennis Uy continues as chairman while Ernest Alberto has been appointed as the new CEO of the high-growth telecom unit and Donald Patrick Lim as acting DITO CME president.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.