Dito board OKs stock rights offer

MANILA, Philippines — Dito CME Holdings Inc. has secured board approval for a stock rights offering of common shares, as well as placement of shares.

In a stock exchange filing, the publicly listed firm chaired by Davao-based businessman Dennis Uy said the company’s board of directors has approved to offer to all eligible stockholders, as of the date and terms to be set by management, rights to subscribe to the company’s common shares.

The offering will be subject to the approval of the increase in the company’s authorized capital stock, the registration or exempt requirements, as applicable, of the Securities and Exchange Commission (SEC), and the listing requirements of the Philippine Stock Exchange.

Dito CME’s board likewise approved the issuance of shares out of its unissued capital stock, at the terms determined by management, to ensure compliance of the corporation’s minimum public ownership requirement under existing rules and regulations.

Last week, the company announced that it was able to secure pre-clearance from the SEC on its share-swap application.

The application refers to the acquisition of 100 percent of the shares of Udenna Communications Media and Entertainment Holdings Corp. in exchange for the issuance of 11.2 billion common shares of Dito CME in favor of Udenna Corp.

Udenna CME is the corporate vehicle that holds Udenna’s shares in its telecommunications business.

Dito CME earlier said the acquisition’s objective is for the company to hold indirect interest in Dito Telecommunity.

The company said it also gives it various options to infuse additional capital to Dito Telecommunity, especially since the telecommunications business is capital intensive.

Dito Telecommunity, which was commercially launched last March 8, is currently present in 210 cities and municipalities nationwide.