In a report, Abacus Securities pegged at P221 billion the “implied value” of Dito Telecommunity based on the terms of the proposed shares swap with Dito CME, a shell company formerly owned by bilyonaryo Bobby Ongpin.
Uy owns 60 percent of Dito Telecommunity through Udenna (35 percent) and Chelsea Logistics (25 percent) with its foreign partner, China Telecom, holding the remaining 40 percent.
Uy is transferring Udenna’s 35 percent stake in Dito Telecommunity with Dito CME in a share swap involving 11.2 billion shares (that would dilute minority shareholders to 20 percent).
At the maximum strike price of P6.90 per share, Abacus said Dito Telecommunity’s market capitalization would be P221 billion, with Chelsea’s stake worth P55.38 billion or P25.6 per share.
At P221 billion, Abacus said Dito Telecommunity, which Uy said would have its market launch in March 2021, would be worth double the P114 billion market cap of newly-listed Converge and triple the valuation of Digitel when it gobbled up by PLDT from the Gokongweis in 2011.
Abacus said Dito Telecommunity’s was just 19 percent off Globe’s market cap of P272 billion and 27 lower than PLDT’s market value of P303 billion.
“We have no idea how the valuation was arrived at and we believe the PSE (Philippine Stock Exchange) should have insisted on filing of the third party opinion before lifting Dito CME’s trading suspension. Our view is that it is simply too high given that Dito Telecommunity is not even commercially operating and is unlikely to achieve profitability for at least three to five years,” said Abacus.