The Bankers Association of the Philippines (BAP) is willing to sell its stake in Philippine Dealing System Holdings Corp. (PDSHC) to the Philippine Stock Exchange (PSE) at the “right conditions”.
BAP president Jose Teodoro Limcaoco said in a recent interview the group engaged a third-party adviser to determine the value of the group’s shares in PDSHC.
The adviser, however, has yet to finalize the fair valuation for BAP’s 20-percent interest in PDS.
“We’re willing to sell at the right conditions,” Limcaoco said.
PDSHC is the operator of the fixed-income exchange. It also owns the Philippine Dealing & Exchange Corp. (PDEx).
Limcaoco said that as the banks are the biggest customers of PDEx, the BAP wanted more information on how the PSE would operate and govern the PDEx.
“So we want understand how PDEx will be governed, if we were to sell our shares in PDS,” Limcaoco said.
Limcaoco said the PSE already sent a letter stating that they are interested in acquiring BAP’s stake in PSE. However, it has yet to state its offer price.
The PSE also owns 20.98-percent stake in PDS. Other shareholders of PDEx are the Singapore Stock Exchange, Whistler Technology, Tata Consulting, San Miguel Corp. and Financial Executives Association of the Philippines.
The Securities and Exchange Commission (SEC) in December 2023 granted the PSE an exemptive relief that would enable it to acquire full ownership in PDS.
The exemptive relief will enable the PSE to breach the 20-percent cap in the ownership of a single industry in an exchange.
A merger of the equities and fixed income market exchanges is being pushed to expand the volume of trades and improve the country’s capital markets.
PSE president Ramon Monzon earlier said he was hoping to complete the acquisition of PDS within the year.