The Philippine Stock Exchange, Inc. (PSE) is set to reshape the country's capital markets with its acquisition of a controlling stake in the Philippine Dealing System Holdings Corporation (PDS).
In a statement on Thursday, Dec. 26, the PSE announced that it has signed agreements to acquire a 61.92 percent stake in the PDS for P2.32 billion, further solidifying its position in the local capital market.
The acquisition will bring PSE's total ownership in PDS to 82.9 percent from existing 20.98 percent. The transaction, based on a P3.75 billion enterprise value of PDS, is priced at P600.00 per share.
“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,” Ramon S. Monzon, PSE president and chief executive officer, said.
“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,” he added.
The agreements include a term sheet with the Bankers Association of the Philippines (BAP) for 28.83 percent of PDS shares, and share purchase agreements with five other shareholders.
They are Singapore Exchange Limited (20 percent stake), Whistler Technologies, Inc. (eight percent), San Miguel Corporation (four percent), Investment House Association of the Philippines (0.65 percent), and Golden Astra Capital, Inc. (0.36 percent).
Mizuho Bank Ltd. also signed a term sheet for its 0.08 percent stake.
The PDS is the holding company for the Philippine Dealing & Exchange Corporation, which operates the fixed income exchange, and the Philippine Depository & Trust Corp., the depository for equities and fixed income securities.
The transaction is subject to customary closing conditions, including corporate approvals.