The Philippine Stock Exchange reported that AIA Philippines Life and General Insurance Company Inc. has also agreed to sell its four percent stake in Philippine Dealing System Holdings Corporation (PDHSC) to the bourse.
In a disclosure, the PSE sais AIA is selling its 250,000 PDHSC shares to the PSE for P150 million or at P600 per share, the same selling price of the other shareholders, based on the enterprise value of P3.75 billion.
With the inclusion of AIA, the PSE is now acquiring a total of 4.22 million PSHDC shares worth P2.53 billion equivalent to a 67.47 percent stake to raise the PSE’s total interest in the company to 88.44 percent.
AIA’s move comes after the decision of the Financial Executives Institute of the Philippines Research and Development Foundation (FINEX Foundation) to also sell its stake to the PSE.
PSE entered into a share purchase agreement with FINEX Foundation on Dec. 27, 2024 for the acquisition of 96,388 common shares of PDSHC equivalent to a 1.54 percent interest.
The PSE signed agreements with PDS shareholders last Dec. 26, 2024 to purchase a total of 3.87 million PDSHC shares for P2.32 billion. The transaction cost was based on the P3.75 billion enterprise value of PDSHC or P600 per share.
Among the agreements signed was the term sheet with the Bankers Association of the Philippines (BAP) for its shares and those owned by BAP Data Exchange Inc. and certain member-banks for an equivalent of 28.83 percent of PDS. A term sheet was likewise signed with Mizuho Bank Ltd. for its 0.08 percent stake.
The PSE also inked share purchase agreements with five other PDS shareholders. PSE will acquire Singapore Exchange Limited’s 20 percent stake; Whistler Technologies, Inc.’s eight percent; San Miguel Corporation’s four percent; Investment House Association of the Philippines’ 0.65 percent; and Golden Astra Capital, Inc.’s 0.36 percent shareholding in PDS.
“These signed agreements bring us a step closer to achieving our objective of consolidating the equities and fixed income exchanges and realizing the synergies and efficiencies from this unified setup," said PSE President and CEO Ramon S. Monzon.
He added that, “This will also allow us to be instrumental in the growth and development of the Philippine capital market with the introduction of new products for various stakeholders as well as the implementation of risk management processes.”
The PDS is the holding company that owns the Philippine Dealing & Exchange Corporation, the operator of the fixed income exchange. It also owns the Philippine Depository & Trust Corp. which serves as the depository for equities and fixed income securities.
The PSE also disclosed that it has closed the transactions with FINEZ Foundation and IHAP