Fund withdrawals hit Dennis Uy’s firm

July 16, 2020

TWO withdrawal of funds in two weeks’ time hit the company that was supposed to run the third telco player in the country.

Just the other day, the whole 30 percent share of Singapore management fund in Dito CME Holdings Corp of businessman Dennis Uy was sold.

“Singapore fund Accion divests from Uy’s Dito stock. Accion had zero shares in Dito CME Holdings based on its ownership report on July 14. 2020,” according to the Bilyonaryo news website.

On August 2018, the company Accion bought P842 million shares of stock from the company of Uy at a price of P1.45 per share or a total amount of P1.22 billion.

The sharing in the company of Uy and the buying of its shares of stocks soared in 2018 after it was reported it will become the third telco player that is out to break the duopoly of PLDT and Globe Telecom.

Shortly after, the former Mislatel consortium under Uy which is now Dito Telecommunity, emerged as the ‘provisional winner’ in the bidding for the third telco player in the country last Nov. 7, 2018.

In the final days of June 2020, former Department of Information and Communications Technology (DICT) Undersecretary Eliseo Rio Jr. withdrew his share in Dito Telecommunity which totaled 1.2 million shares worth P44.4 million.

Rio though still has shares left in the company owned by the Davao-based Uy totaling to about 2.3 million.

Both Rio and those behind Accion have yet to issue statements explaining the reason for withdrawing their respective shares in Dito CME Holdings.

But there are unconfirmed reports that some investors of Dito Telecommunity were affected by talks that the commercial rollout of the third telco will be further delayed owing to the snag in the construction of the digital infrastructure due to the present coronavirus pandemic.