DITO CME Holdings is in talks with potential investors, including a state pension fund, as it seeks to boost capital, two sources with knowledge of the deal said yesterday.
Among the potential investors in talks with the listed telecoms conglomerate valued at $706 million was the Government Service Insurance System (GSIS), said the two sources, who were not authorized to talk to media.
One source said DITO could raise around P8 billion, the amount of its planned stock sale that was shelved in January, adding the deal to sell shares is not yet final and an agreement could happen next year.
GSIS did not immediately respond to a request for comment.
DITO’s parent firm Udenna Corp said, “We are not aware of any developments that would affect the share price”.
DITO and Udenna are controlled by Dennis Uy.
Since launching commercial operations in March 2021, DITO has attracted more than 12 million subscribers, a drop in the bucket compared with the combined 156 million users of the country’s two other networks.
DITO, which is aiming to book a profit by 2026, has committed to investing $5 billion to build thousands of towers and roll out a 5G service. — Reuters
