The Philippine Stock Exchange Inc. (PSE) signed Thursday an agreement to acquire an additional 61.92-percent stake in Philippine Dealing System Holdings Corp. (PDS) for P2.32 billion.
This is on top of the PSE’s existing 20.98-percent stake in PDS or the fixed-income exchange. At a price of P600 per share, PSE will purchase 3.87 million PDS shares for P2.32 billion.
The transaction cost was based on the P3.75-billion enterprise value of PDS.
Among the agreements signed was the term sheet with the Bankers Association of the Philippines (BAP) for its shares and those owned by BAP Data Exchange Inc. and certain member-banks for an equivalent of 28.83 percent of PDS.
It also signed a term sheet with Mizuho Bank Ltd. for its 0.08 percent stake.
The PSE said it also signed share purchase agreements with five other PDS shareholders.
The PSE will acquire Singapore Exchange Limited’s 20-percent stake; Whistler Technologies Inc.’s 8 percent; San Miguel Corp.’s 4 percent; Investment House Association of the Philippines’ 0.65 percent; and Golden Astra Capital Inc.’s 0.36 percent shareholding in PDS.
“These signed agreements bring us a step closer to achieving our objective of consolidating the equities and fixed income exchanges and realizing the synergies and efficiencies from this unified setup. This will also allow us to be instrumental in the growth and development of the Philippine capital market with the introduction of new products for various stakeholders as well as the implementation of risk management processes,” said PSE president and chief executive Ramon Monzon.
The PDS is the holding company that owns the Philippine Dealing & Exchange Corp., which runs the fixed-income exchange. It also owns the Philippine Depository & Trust Corp. which serves as the depository for equities and fixed-income securities.
The transactions are subject to the customary closing conditions, including corporate approvals and delivery of closing certificates.
