Prior to the entry of Dennison Holdings Corporation in August 2018, DITO CME HOLDINGS CORP. (DITO) was a shell company holding cash of around 1.1 Billion Pesos and some available-for-sale securities/financial assets valued at around 360 Million Pesos.
In August 2018, Dennison Holdings Corporation infused capital to DITO in the amount of 1.3 Billion Pesos by subscribing to newly issued common shares of DITO comprising 45% of DITO. Also at that time, DITO reissued shares held in treasury to Accion Common Development Fund SPC raising 1.2 Billion Pesos. DITO fundraising at that time grossed 2.5 Billion Pesos. Bringing DITO’s cash balance to around 3.6 Billion Pesos.
The following year, the capital raised in 2018 and the 1.1 Billion cash already in the balance sheet of DITO prior to the entry of Dennison Holdings Corporation were then advanced to Udenna Corporation, Chelsea Logistics and Infrastructure Holdings Corporation and Chelsea Shipping Corporation. In 2019, the Group granted Udenna Corporation, Chelsea Logistics and Infrastructure Holdings Corporation, and Chelsea Shipping Corporation advances amounting to P3,546.15 million, P332.40 million, and P33.0 million, respectively. The entry of Dennison Holdings into DITO enabled Udenna Corporation, Chelsea Logistics and Infrastructure Holdings Corporation and Chelsea Shipping Corporation to access to the 1.1 Billion cash balance in the balance sheet of DITO.
As of June 30, 2020, the advances to Udenna Corporation, Chelsea Logistics and Infrastructure Holdings Corporation and Chelsea Shipping Corporation constitute DITO’s most significant assets.
DITO has no operating revenues and its earnings come from the interest income from its advances.
DITO holds no special permit or license that will make it more valuable than the face value of its most significant assets right now – the advances to Udenna Corporation, Chelsea Logistics and Infrastructure Holdings Corporation, and Chelsea Shipping Corporation.
Disclaimer and Disclosure: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent view point. Accuretti Systems Inc. in the course of day to day trading may have own, or is considering buying or disposing, the shares of the companies mentioned in this commentary.
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