DITO says business 'viable' despite DITO CME deferred stock rights offer

ABS-CBN News

Posted at Feb 01 2022 09:18 AM

MANILA - DITO Telecommunity said it remains a sustainable business despite DITO CME's announcement that it would defer its stock rights offer due to unfavorable market conditions.

DITO CME holds a controlling stake in the third telco DITO Telecommunity, a consortium operated by Davao-based businessman Dennis Uy with China Telecom.

The telco's chief administrative officer Adel Tamano on late Monday said it would be inappropriate for DITO Telecommunity to comment directly on the deferment since the 2 companies are "separate and unique."

DITO is on track to meet its third technical audit set in July, Tamano said.

So far, it had already hit 50 percent of its 12 million subscriber goal for 2022, he added.

For its third year, DITO committed to reach 70 percent population coverage and an average download speed of 55 Mbps. 

"Our assessment is that given these indicators, DITO Telecommunity remains a viable and sustainable business as we remain steadfast in our commitment to partner with the Philippine government and our private sector partners to provide world class, affordable, connectivity to Filipinos wherever they may be," Tamano said. 

DITO CME earlier said it planned to raise P8 billion from the share sales to fund the telco's expansion.

Even with the deferred fund raising activity, DITO CME chief financial officer Joseph Ong said the company was able to secure about $4 billion in loan commitments from foreign lenders. 

Trading of the listed DITO CME was halted on Jan. 31 but its was lifted by the Philippine Stock Exchange after the company vowed to refund investors in the deferred offer.

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