Udenna sell-down seen as  liquidity-management move

ANALYSTS said Udenna Corp.’s disposal of 210 million DITO CME Holdings Corp. shares appears to be a liquidity-management move that could help improve the group’s financial flexibility while keeping the door open for potential strategic investors.

In a regulatory filing on Tuesday, DITO CME said its parent company Udenna sold 210 million common shares in the listed telecommunications company on April 27.

The transaction involved the sale of 75 million shares at 97 centavos apiece worth P72.75 million, another 75 million shares at 95 centavos each valued at P71.25 million, and 60 million shares at 95 centavos each worth P57 million.

Following the transaction, Udenna reduced its stake in DITO CME to 48.81% from 49.79%.

According to DITO CME’s ownership report, Summit Telco Holdings Corp. holds a 15.36% stake in the company, while Summit Telco Corp. Pte. Ltd. owns 7.4%.

“Udenna’s latest share disposal looks more like liquidity management than a strategic exit, but it does create more room for potential new investors,” First Metro Securities Brokerage Corp. Equity Research Analyst Samantha Patricio said in a Viber message.

“We note that the disposal was less than 2% of the group’s total shares in DITO CME. With the group still holding close to half of DITO CME, control remains intact. However, continued sell-downs would meaningfully raise the likelihood of a strategic entrant. For now, the move keeps the door open,” she added.

First Grade Finance, Inc. Managing Director Astro C. del Castillo said the sale could help improve the group’s financial position.

“The sale will strengthen its cash flow and help address its debt concerns. It’s a step towards a graceful exit of Udenna as a majority shareholder and Summit Telco as the new one,” he said in a Viber message.

Last year, the Philippine Competition Commission approved Summit Telco’s acquisition of nine billion shares in DITO CME.

As of end-September 2025, DITO CME narrowed its attributable net loss to P9.65 billion from P11.05 billion a year earlier.

For the nine-month period, revenues rose 25.48% to P14.92 billion, while gross expenses increased 13.7% to P24.65 billion.

At the stock exchange on Wednesday, DITO CME shares declined six centavos, or 6.12%, to close at P0.92 apiece. — Ashley Erika O. Jose