A top executive of the Bankers Association of the Philippines Bank (BPI) said they expect the Philippine Stock Exchange (PSE) to submit a formal offer on the buyout of PDS shares this week.
The buyout is expected to lead to the merger of the PSE and PDS, the operator of the Philippine Dealing and Exchange Corp. (PDEx), the country’s fixed-income exchange.
“I think we’re expecting a formal offer from PSE, so we expect that maybe in the next week, a formal offer. Then the board will take it up and study,” said Bank of the Philippine Islands president and chief executive Jose Teodoro Limcaoco said late Friday.
Limcaoco is also the president of the BAP which holds a 21-percent stake in PDS Group.
The PSE, which owns 20.99 percent of the issued and outstanding capital stock of the PDS Group, plans to buy out other PDS shareholders including the BAP, Singapore Exchange Ltd. with 20 percent, Tata Consultancy Services Asia with 8.0 percent, Whistler Technologies Services Inc. with 8 percent, San Miguel Corp. with 4.0 percent, Philippine American Life and General Insurance Co. Inc. with 4.0 percent, Citicorp Financial Services and Insurance and Brokerage Philippines Inc. with 3.10 percent, Development Bank of the Philippines with 3.08 percent, Financial Executives Institute of the Philippines Research and Development Foundation with 3.08 percent, Social Security System with 1.54 percent, IHAP with 1.04 percent and others with 2.14 percent.
BPI is a member of the BAP.
“We have an internal valuation as I’m sure they have also. I’m sure they’ll be far apart. But I’m sure we can come to an agreement. I’m sure price is not an issue, or shouldn’t be a stumbling block,” Limcaoco said.
“Obviously PDS will be owned by PSE. You’ll have the depository owned by the PSE and then PDEX which is another exchange, whether that remains a separate bond exchange or whether they fold that bond exchange into a bond and stock exchange, we’ll see,” Limcaoco said.
