Unification of capital mart infra seen next year

MANILA, Philippines - The Philippine Stock Exchange (PSE) expects the unification of the country’s capital market infrastructure to push through by the first half of next year.

“I think so, if there are no issues. We’re in due diligence right now,” PSE president and chief executive officer Hans Sicat said when asked if the planned PSE and the Philippine Dealing Exchange Corp. (PDEx) merger can finally happen within the first half of next year.

“If things go well and there are no other major issues, we should be able to proceed,” he added.

Sicat said the PSE currently has over 54-percent control in Philippine Dealing Systems Holdings Corp. (PDS), the holding firm for corporate bond bourse PDEx.

“We’ve always targeted to get 67 percent which is super majority,” Sicat said.

Diversified conglomerate San Miguel Corp. (SMC) agreed last month to sell its entire four percent interest in the PDS Group to the PSE at a cost of about P90 million.

The country’s stock market operator likewise bought out shares of Golden Astra Capital in PDS, equivalent to 0.36 percent.

The PSE earlier said it has reached an agreement with Bankers Association of the Philippines on the indicative terms and conditions for the proposed buyout of BAP’s 28.9-percent share in PDS Group.

The PSE and the PDEx have been eyeing a merger since last year. The merger is seen to enhance liquidity in the financial markets.