Land Bank of the Philippines is getting closer in securing a relief from the Securities and Exchange Commission that will enable it to acquire a majority stake in Philippine Dealing System Holdings Corp.
SEC Commissioner Ephyro Luis Amatong said in a recent interview only two major issues needed clarification from LandBank regarding its planned takeover of PDSHC.
“There are just two remaining major issues, one in on the fee structure and another one is we have asked more details on their efforts to make the fixed income market more inclusive to agricultural and agri businesss,” Amatong said.
The SEC wants additional information on the planned amendments to the fee structure, especially on how LandBank will reduce the fees being imposed to listed entities to reduce costs.
The SEC also wants clarity LandBank’s planned programs for financial inclusion both for investors and companies trying to gain access to the fixed income market.
“It is progressing,” Amatong said, when asked on the status of LandBank’s request for a so-called exemptive relief.
“They have submitted substantive discussions on their applications. So now we have fewer questions and our questions are now more focused,” he added.
LandBank must obtain an exemptive relief from the SEC because of a provision in the the Securities Regulation Code that states no single group can own up to 20 percent of an exchange.
Major shareholders of PDSHC include Philippine Stock Exchange, Singapore Stock Exchange and Bankers Association of the Philippines, Tata Consultancy Services Asia Pacific Philippines, San Miguel Corp., Philippine America Life and General Insurance Co., Development Bank of the Philippines, Social Security System and Citibank NA.
The PSE in January reported that LandBank offered its shares PDSHC for P281.96 million, or P215 per share. The offer is significantly lower than P360 last year.
LandBank is the second entity that attempted to acquire PDSHC.
The PSE earlier expressed interest in acquiring a majority stake in PDSHC in a bid to merge the equities and fixed income exchanges. It already signed share purchase agreements with several shareholders of the PDSHC that own 72 percent of the bond exchange.
It failed to secure an exemptive relief from the SEC as brokers ownership in the local bourse remained above 20 percent.