DITO CME board authorizes 9B share sale to Summit Telco

DITO CME [DITO 1.90, up 7.3%; 242% avgVol] [link] disclosed that its board has authorized DITO Chairman Dennis Uy and DITO President Donald Lim to “sign and execute a Subscription Framework Agreement for the potential investment by Summit Telco Corporation Pte. Ltd. (“Summit Telco”). The SFA with Summit Telco will dictate the timing, price, and other terms of Summit Telco’s purchase of up to 9 billion primary shares of DITO. As covered by InsiderPH, a deal of this size (once executed) would bring the ownership share of Udenna Corporation (Dennis Uy’s personal holding company) “to about a third of the company”, and give “Singapore-registered Summit Group... almost half of [DITO].”

MB bottom-line: Who owns Summit Telco? How will DITO be governed going forward? What does this all mean? We don’t have any public information. In traditional DITO style, they’ve been almost petulantly tight-lipped about the money and/or personalies behind Summit Telco. Similar to how evasive and prickly they were at the start of this goofy journey when they attempted to dodge valid questions about their partnership with state-owned China Telecom. DITO’s stock is up 7% this month, but down 19% YTD, and down almost 90% from its highs back when DITO was a basurapalooza star performer. Those days are long gone.

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