Dennis Uy's Dito CME Acquiring Stake in Dennis Uy's Dito Telecommunity
Dito CME Holdings, the digital multimedia arm of tycoon Dennis Uy’s empire, is acquiring a stake in Dito Telecommunity, the newly minted third telco in the Philippines, which is also owned by Dennis Uy. The acquisition is part of a share-swap deal worth P77.28 billion as Uy’s businesses undergo restructuring.
Dito CME will be acquiring the Dito Telecommunity stakes owned by Udenna CME, which holds Udenna Corp.’s shares in Dito Telecommunity.
Udenna Corp. owns 35 percent of the telco, which aims to shake up the Globe-PLDT duopoly. Uy’s Chelsea Logistics and Infrastructure Holdings Corp. owns 24 percent, and China’s state-owned China Telecom Group owns the remaining 40 percent.
Udenna CME is also a major stakeholder of Dito Holdings Corp., which acquired Chelsea’s Dito Telecommunity shares in October.
Through this restructuring, Dito CME will now indirectly own 60 percent of the shares of Dito Telecommunity and will take on the role as a telco holding firm aside from its digital media projects.
In return, Udenna CME will acquire 11.2 billion shares of Dito CME.
“This is one step of our plan of realizing DITO CME’s ownership of DITO Telecommunity, through Udenna CME and DITO Holdings Corp.,” said Dito CME president Eric Alberto in a disclosure.
Dennis Uy is the chairman of Dito CME, Dito Telecommunity, Chelsea Logistics, Udenna Corp., and Udenna Group.
What does this mean?
The restructuring might seem confusing, but it will be important to note that Dito CME will indirectly have a majority stake in Dito Telco as Dito CME and Chelsea are listed on the Philippine Stock Exchange.
Here's how Dennis Uy's businesses are connected: