MANILA, Philippines (UPDATE 1 1:30 p.m., Aug. 14) — Davao-based tycoon Dennis Uy quit his post as president of Dito CME Holdings Corp. on Tuesday, the company announced Friday.
In a disclosure to the stock exchange, Dito said the holding firm's board of directors accepted the resignation of Uy, who will still sit as chairman of the company. Ernesto Alberto, who joined Dito last month after resigning last year from PLDT Inc., will serve the unexpired term of Uy.
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“The change shall foster an appropriate balance of power, increased accountability, and better capacity for independent decision-making,” Dito said.
The revamp comes at a crucial time for Dito, which has sought a delay on the technical launch of its telco venture, Dito Telecommunity, originally scheduled last month. Instead, regulators will now examine Dito's compliance to mandated speeds and coverage by March 2021 ahead of its expected market launch.
To note, DITO CME — formerly ISM Communications — will own indirect interest in Dito Telecommunity once the necessary governmental approvals are obtained and the appropriate transfer documents are executed. However, the holder of the government franchise is still DITO Telecommunity.
Dito's entry into the telco space is in response to President Rodrigo Duterte's tirades against the existing duopoly of PLDT and Globe Telecom Inc. over the telcos' sloppy service.
Duterte repated his attacks against the two firms during his recent State of the Nation Address (SONA) but afterwards ordered officials to cut red tape in securing permits for telco towers, which apparently is to blame for delays in service.
After the SONA, Uy, who contributed to Duterte's presidential campaign in 2016, said he supported president's call for faster telco connection.
Following the announcement, shares at Dito were down 0.32% to P3.09 apiece as of 11:11 a.m.
This is a developing story.