The Philippine Stock Exchange (PSE) has reached a revised agreement with the Bankers Association of the Philippines (BAP) to purchase a smaller stake in the Philippine Dealing System Holdings Corp. (PDS), a key player in the country’s fixed income market.
Under the newly signed share purchase agreement, PSE will acquire 1.16 million common shares of PDS, representing 18.62 percent of the company’s total issued stock. This marks a reduction from the initial target outlined in a December 2024 term sheet, which had proposed the purchase of up to 1.8 million shares (28.83 percent of PDS).
This adjusted deal is part of a broader PSE effort to consolidate its position in the PDS, which operates the country’s fixed income exchange. With this transaction, PSE will now own 57.25 percent of PDS, having previously signed agreements to purchase additional shares from AIA Philippines Life and General Insurance Co. and the Financial Executives Institute of the Philippines (FINEX) Foundation. Together, these agreements will bring PSE’s total acquisition to 3.87 million shares, valued at approximately P2.32 billion based on PDS’s enterprise value of P3.75 billion.
The revised agreement underscores the PSE’s commitment to expanding its footprint in the country’s capital markets, as it continues to pursue strategic acquisitions to enhance liquidity and investor participation. The adjusted purchase price of PDS shares, pegged at P600 per share, remains aligned with the company’s market valuation, ensuring stability in the exchange’s growth trajectory.
This transaction further strengthens PSE’s positioning as a dominant player in the Philippine financial landscape, following similar moves by other stakeholders like AIA and FINEX.
