The Philippine Stock Exchange said it will ask the Securities and Exchange Commission for a 45-day extension to submit an amended business plan to consolidate the equity and fixed-income markets by buying out the other shareholders of Philippine Dealing System & Holdings Corp.
The deadline for the share purchase agreements that the PSE signed with various shareholders of PDS Holdings expired last month.
A PSE source said while the deal was “as good as dead”, PDS Holdings’ shareholders who expressed interest to sell their shares to PSE had not informed the exchange they were canceling the deal.
“Its kind of legal limbo that is why we also need time,” the PSE source said.
He said the company’s strategy of merging the exchange and the bond markets was the same model that major markets in Southeast Asia, like Thailand, Malaysia, Indonesia, were doing.
“If you look at their models [Thailand, Malaysia, and Indonesia], they are all integrated exchanges. Fixed income is just a division or part of them, depository functions is part of it,” he said.