MANILA - DITO CME Holdings has moved to acquire Udenna Communications and Media Entertainment Holdings Corp (Udenna CME) through a share swap deal valued at up to P77 billion in a bid to take partial hold of the country's third telco player, the firm said on Tuesday.

DITO CME will acquire 100 percent of Udenna CME from Udenna Corp, in exchange for 11.2 billion DITO CME shares which will be issued at P6 to P6.90 per stock.

Powered by the share swap merger, DITO CME will absorb and have an indirect hold in DITO Telecommunity -- the new telco player to battle PLDT and Globe -- through Udenna CME.

Udenna CME holds 58 percent of DITO Holdings, the company purchasing DITO Telecommunity shares from Udenna Corp.

The merger acquisition will transform DITO CME from a shell company to a telco-focused holding firm.

"This is one step of our plan of realizing DITO CME’s ownership of DITO Telecommunity, through Udenna CME and DITO Holdings Corp. DITO CME will end up as the beneficial owner of the Udenna Group’s equity interests in DITO Telecommunity, excluding those under Chelsea Logistics and Infrastructure Holdings Corporation,” DITO CME President Eric Alberto said.

DITO CME said the indirect ownership to DITO Telecommunity presents various options for capital infusion to enable the telco firm's future infrastructure investments.

"We want to deliver on the expectations of our shareholders and the investing public, thus we don’t want to make promises that we can’t keep. Rest assured that we are working hard to execute on our plans as best we can. Our principal and immediate mission is to ensure the commercial launch of DITO Telecommunity by March next year,” said Dennis Uy, DITO Telecommunity Chairman and CEO.

DITO Telecommunity earlier pledged a minimum internet speed of 27 mbps in its first year of operations, or an internet connection speed nearly as fast as that of Singapore.

It received its license to operate as the country's third telco in July last year.

• House approves third telco DITO Telecommunity's 25-year franchise
• DITO says it has enough resources to challenge PLDT, Globe
• Third telco player DITO hastens rollout, set to 'launch soonest'

Watch more in iWantv or TFC.tv