A day after President Rodrigo Duterte’s threat to shut down its two rivals, shares in a new Philippine telecommunications firm (telco) owned jointly by state-run China Telecom (0728.HK), and Davao-based businessman and presidential friend Dennis Uy soared.
In his fifth and penultimate State of the Nation Address (SONA), Duterte called PLDT (TEL.PS) and Globe Telecom’s (GLO.PS) services “lousy” and threatened their closure that could unnerve investors concerned about political risks.
Compared to falls of over 3% for PLDT and Globe Telecom — whose billionaire owners Duterte has repeatedly attacked for being “oligarchs,” threatening state intervention in their business empires — DITO CME DITO.PS, a holding company for the new operator, DITO Telecommunity, jumped nearly 11%.
As a response to Duterte’s threat to shut down Globe and PLDT, Francis Lim, head of the Management of the Association of the Philippines, said: “Given what recently happened to ABS-CBN, this is a clear and present danger to the businesses mentioned. He can make it happen and that sends a chilling effect to business and potential investors.”