Shares of two Philippine firms owned by tycoon Dennis A. Wee, a close ally of outgoing President Rodrigo R. Duterte, fell early in trading on Friday after Reuters reported a potential sale of the companies.
DITO CME Holdings, Inc., owner of the nation’s third-largest telecom operator, and Chelsea Logistics lost as much as 7% and 3.8% respectively, while the broader stock index fell 0.4% before the midday break.
“Investors are speculating about what is happening, given the lack of information about the planned sale,” said Astra del Castillo, managing director of First Grade Finance in Manila.
“Because of the atmosphere of uncertainty and the flow of global and local markets, investors have decided to stay safe,” added Mr. Castilla.
Mr Wu, whose business empire has expanded rapidly under Mr Duterte’s term, is considering selling the business worth several billion dollars, Reuters reported on Tuesday, citing sources familiar with the matter.
It was not immediately clear why Mr. Ui, a major participant in Duterte’s campaign in his 2016 presidential campaign, would be putting assets up for sale. His representatives did not respond to requests for comment.
Buyers are looking at Mr. Uya’s business prospects, including a gas field in the South China Sea and a commercial land rental firm on the site of a former U.S. military base, sources said.
Not all of Mr. Uya’s companies lost ground: Phoenix Petroleum’s oil retail stocks rose 0.4%, while PH Resorts Group’s casino resort developer rose 8% two days after the announcement of the capital injection from Filipino billionaire. – Reuters