By Chino Leyco
State-run Land Bank of the Philippines has formally expressed its interest to acquire the stake of Singapore Exchange Ltd. in the Philippine Dealing System Holdings Corp. (PDSHC).
In a letter dated March 13 2018 to Philippine Stock Exchange President and Chief Executive Office Ramon Monzon, Alex Buenaventura, Land Bank president and chief executive said the state-owned lender is interested to acquire Singapore Exchange’s 20 percent stake in PDSHC at P360 per share.
“This offer is valid for a period of 30 days from the seller’s receipt of this letter,” Buenaventura’s letter obtained by reporters read.
Singapore Exchange’s 20 percent shareholding in PDSHC is equivalent to 1.25 million shares.
The Land Bank’s planned acquisition would cost P450 million, which Buenaventura said will be funded internally.
Earlier, Land Bank had offered to buy all shares of existing owners PDSHC at P360 per share.
“In the LBP Board Meeting held on 27 February 2018, the Board of Directors approved LBP’s proposed offer to purchase at least 66.67 percent of total PDSHC common shares at P360 per share,” Buenaventura said last month.
Based on the filing with the PSE, PDSHC’s outstanding common shares stood at 6.25 million. With LandBank’s plan to acquire 66.67 percent stake in the company, that would entail 4.167 million shares, equivalent to around P1.5 billion.
In January, Land Bank board approved the proposed acquisition of a majority stake in the PDSHC, the holding firm of the country’s fixed-income trading platform.