Dennis Anthony Uy announces Converge share buyback, exit of Coherent Cloud

Converge ICT Solutions Inc. has announced a share buyback program to enhance shareholder value, with investor Cloud Investments fully divesting from the fiber internet provider.
In a disclosure to the Philippine Stock Exchange, Converge said part of the approved buyback program is the acquisition of shares worth as much as P6.5 billion from Coherent Cloud, an affiliate of Warburg Pincus.
Converge said the buyback would be funded by a drawdown of existing debt facilities.
The buy-back program, if utilized fully, will increase return on equity to shareholders by 1.5 percentage points to 24 percent.
“The share buyback highlights the confidence of the founders and management team in Converge ICT’s long-term, sustainable
growth potential and value creation as well as the company’s confidence in its continued ability to capture the vast market opportunity,” Converge ICT founder and CEO Dennis Anthoy Uy said.
Converge said the approval of the buyback was concurrent with the announcement by Coherent Cloud it would sell 288.7 million shares, representing 3.8 percent of the company’s outstanding share capital, at P25 per share through an accelerated book build offering (ABO).
Converge said the price of the share buyback would be at the same price as the ABO.
Upon completion of the ABO and the buyback, Converge ICT’s public float will increase to over 30 percent.
Coherent Cloud will also distribute within 30 days its remaining shares in Converge ICT to certain parties as part of existing arrangements.
Following the completion of the transactions, Warburg Pincus managing director Saurabh Agarwal will remain on Converge ICT’s board.
“Warburg Pincus invested in Converge ICT several years ago to partner with Dennis and
Grace in fulfilling their vision of building a business focused on providing high-speed fixed broadband to millions of unserved and underserved households and businesses across the Philippines,” Agarwal said.
“We are extremely proud of what Converge ICT has achieved over the last few years and believe it continues to be well positioned to accelerate its growth trajectory and further capture a significant share of the market,” he added.