DITO CME denies report Dennis Uy exiting company

MANILA - DITO CME, the telco holding firm of Davao-based businessman Dennis Uy, on Thursday denied a report that Uy was on his way out of the company.

Business website Bilyonaryo on Wednesday reported that Uy “appears to be on the exit path” after his Udenna Corp saw its stake in DITO CME reduced from 58.5 percent to 9.8 percent.

Bilyonaryo said this was after two other firms bought shares in DITO CME, which is the parent company of the country’s third major telco player DITO Telecommunity.

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But in a statement, DITO CME also denied that Uy’s Udenna Corp had sold most of its shares in the telco holding firm.

DITO CME said Uy’s Udenna Corp “still beneficially owns 69.68 percent of the issued and outstanding capital stock of DITO CME through certificated and scripless shares.”

The holding company said as of the end of September, Summit Telco Corp owned 9.79 percent and Xterra Ventures Pte Ltd owned 3.76 percent of DITO CME.

There are also no current plans for Uy or Udenna to divest its remaining stake in DITO CME, it added.

“As mentioned above, Udenna continues to hold majority shareholdings DITO CME. If Udenna has any plans to divest, the necessary disclosures will be made at the appropriate time in accordance with the disclosure rules,” the company said.

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Uy recently stepped down as the CEO of DITO Telecommunity to make way for Ernesto Alberto. The Davao businessman however retained his seat as chairman of the telco.

Last month, DITO Telecommunity said it had taken out a $3.9 billion loan to finance its operations and repay short-term loans.

The telco hopes to break even by 2025.