The Philippine Stock Exchange, Inc. (PSE) has finalized a deal to increase its stake in Philippine Dealing System Holdings Corp. (PDS), the operator of the country’s bond market trading platform, rose to 61.92 percent, up from 20.98 percent. The acquisition, valued at approximately P2.32 billion, is expected to further enhance the PSE’s position in the nation’s capital markets.
On Thursday, PSE and PDS shareholders signed a series of agreements that will see the equities exchange operator purchase a total of 3.87 million PDS shares at P600 per share. The transaction was based on PDS’s enterprise value of P3.75 billion, according to the PSE.
Among the key agreements signed was a term sheet with the Bankers Association of the Philippines (BAP), covering shares held by BAP, BAP Data Exchange Inc., and several member banks, representing 28.83 percent of PDS. Additionally, PSE reached a term sheet agreement with Mizuho Bank for its 0.08 percent stake.
PSE president and CEO Ramon S. Monzon emphasized that the deal brings the bourse closer to its goal of consolidating both equities and fixed income exchanges, a move expected to generate significant synergies. “This will allow us to be instrumental in the growth and development of the Philippine capital market by introducing new products and implementing enhanced risk management processes,” Monzon said in a statement.
Other significant agreements include share purchase arrangements with several other PDS stakeholders: Singapore Exchange Ltd. (20 percent), Whistler Technologies Inc. (8 percent), San Miguel Corporation (4 percent), the Investment House Association of the Philippines (0.65 percent), and Golden Astra Capital Inc. (0.36 percent).
PDS is the holding company of the Philippine Dealing and Exchange Corp. (PDEx), which operates the fixed income exchange, as well as the Philippine Depository and Trust Corp. (PDTC), a key player in securities depository services.
The transactions are still subject to customary closing conditions, including corporate approvals and the delivery of closing certificates.
