Telecommunications firm DITO CME Holdings jumped nearly 8 percent on Tuesday morning after a report said owner and Davao-based tycoon Dennis A. Uy is in talks to sell a majority stake to a foreign investor.
DITO CME is the controlling shareholder of DITO Telecommunity, a venture with China Telecom.
The Philippine Star reported that Uy is in talks with the same investor group behind Summit Telco Holdings Corp. and Summit Telco Corp., which own a combined 25 percent of DITO CME.
“In this regard, DITO CME Holdings Corp. wishes to clarify that there have been no definitive agreements that have been executed with respect to the majority takeover of DITO CME,” DITO CME said in a stock exchange filing on Tuesday.
“The company will make the necessary disclosures and seek the appropriate regulatory approvals if such a transaction is executed, as required by the rules of the Securities and Exchange Commission and The Philippine Stock Exchange,” it added.
DITO CME’s losses surged to P10.1 billion in the first quarter of 2024, up from P709 million, due to rising costs and increased debt expenses related to its ongoing network rollout.
The company closed the morning session at P2.14 per share, a gain of 6.47 percent.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
