PSE buys add’l 29% stake in PDS for P650 M

MANILA, Philippines - The Philippine Stock Exchange (PSE) has locked up its purchase of an additional 28.91 percent in the Philippine Dealing Systems Holdings Corp. (PDS), the company that owns the operator of the country’s fixed income exchange.

The PSE has signed a share purchase agreement (SPA) with the Bankers Association of the Philippines (BAP) covering the acquisition of BAP’s shareholdings in PDS.

The local bourse will purchase 1.807 million shares of PDS from BAP at a cost of  P650.554 million.

“Closing date will be agreed upon by the parties upon fulfillment of the conditions, but in no case later than Nov. 27, 2015,” the PSE said in a disclosure.

 PDS is the holding company that owns the Philippine Dealing Exchange Corp., the operator of the bond market.  It also owns the Philippine Depository and Trust Corp. which serves as the depository for equities and fixed income securities.

 The PSE’s move to buy into PDS is part of the consolidation of the equities and fixed income exchanges.

“This agreement brings us a step closer to our goal of having a unified exchange for equities and fixed-income products. We are grateful to the BAP for all their support to finalize this deal,” PSE president and CEO Hans Sicat said.

“The consolidation of the equities and fixed-income exchanges is expected to offer additional value to issuers, investors, and other market participants at various levels. It will also provide a more competitive landscape for the Philippine capital markets,” he added.

 The PSE and BAP earlier inked a term sheet in October 2014 wherein both parties agreed, among others, to the P2.25 billion full firm value of PDS. During the annual stockholders’ meeting in May 2015, PSE shareholders approved the increase to at least two-thirds shareholdings in PDS.