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Telecommunication

China Telecom's Philippine partner Dito CME drops rights offering

Flopped fundraising comes as blow to tycoon Dennis Uy, a Duterte campaign donor

The parent of the Philippines' third telecommunications company, Dito Telecommunity, is a joint venture between tycoon Dennis Uy's group and state enterprise China Telecom. It has deferred a stock rights offering on "less than ideal market conditions" but secured longer-term financing. (Source photo by AFP/Jiji and DCME website)

MANILA -- An ongoing 8 billion peso ($156 million) stock rights offering meant to bankroll the expansion of the China-backed telecom challenger in the Philippines has been called off due to "less than ideal market conditions."

Dito CME Holdings, which owns a 54% stake in Dito Telecommunity, announced the decision on Sunday. The unusual move was made amid "perceived risks" surrounding Dito ahead of a looming leadership change in the Philippines and comes as another blow to tycoon Dennis Uy, a campaign donor to President Rodrigo Duterte.

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