PSE acquiring 61.92% of PDS for P2.32B

Local bourse operator Philippine Stock Exchange Inc. (PSE) is beefing up its stakes in bonds or fixed-income market operator Philippine Dealing System Holdings Corp. (PDS).

In a statement, PSE said it signed a deal on December 26, 2024 with the shareholders of PDS to acquire an additional 61.92% in the bonds bourse, on top of its existing 20.98%.

The local bourse will be purchasing a total of 3.87 million shares in PDS at P600 apiece for a total of P2.32 billion.

The PSE said the transaction cost was based on the P3.75-billion enterprise value of PDS.

Broken down, the stock market operator will be acquiring 28.83% of PDS from Bankers Association of the Philippines (BAP), those owned by BAP Data Exchange Inc., and certain member-banks

The PSE also inked a term sheet with Mizuho Bank Ltd. for the purchase of the latter’s 0.08% stake.

The local bourse also inked share purchase agreements with five other PDS shareholders, namely Singapore Exchange Limited’s 20% stake, Whistler Technologies Inc.’s 8%, San Miguel Corp.’s 4%, Investment House Association of the Philippines’ 0.65%, and Golden Astra Capital Inc.’s 0.36%.

“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 CEO Ramon Monzon

The PDS is the holding company that owns the Philippine Dealing & Exchange Corporation, the operator of the fixed income exchange. 

It also owns the Philippine Depository & Trust Corp. which serves as the depository for equities and fixed income securities.

The PSE said the purchase transactions “are subject to the customary closing conditions, including corporate approvals and delivery of closing certificates.”—AOL, GMA Integrated News