The Philippine Stock Exchange Inc. (PSE) announced on Tuesday that the Bankers Association of the Philippines (BAP), along with several of its member banks, has completed all the necessary requirements for selling an 18.80 percent stake in Philippine Dealing System Holdings Corp. (PDSHC) to the operator of the Philippine stock market.
PDSHC holds interests in various service providers involved in trading, clearing, settlement, and post-settlement activities across different asset classes.
With the BAP stake and shares acquired from other PDSHC stakeholders, the PSE will own a total of 78.33 percent of the holding company, bringing it closer to full ownership. Prior to these acquisitions, the PSE held a 20.98 percent stake in PDSHC.
The PSE paid P2.16 billion for the total 57.71 percent additional stake, or P600 per share, valuing PDSHC at an enterprise value of P3.75 billion.
The PSE’s goal is to gain full ownership of PDSHC to align the Philippine capital market with global standards, where markets typically operate under a single exchange structure for both fixed income and equities. This acquisition will vertically integrate the depository function within the same group that handles trading, clearing, and settlement of listed securities.
The move will also streamline operations, offering investors a unified marketplace for trading fixed income, equities, and other products. This consolidation will create a single venue for listing and capital-raising in the Philippines, simplifying the process for companies seeking access to both equity and debt markets.
Furthermore, the integration will enable the PSE to develop new products and services, including derivatives, as a result of the operational efficiencies and synergies expected to arise.
