THE Philippine Stock Exchange, Inc. (PSE) is moving closer to its planned merger with the Philippine Dealing System Holdings Corp. (PDS) after it signed share purchase agreements with some of the latter’s shareholders.
On Jan. 28, the market operator signed a share purchase agreement with the Bankers Association of the Philippines (BAP), which also represented stakes held by BAP Data Exchange, Inc. and certain member-banks, to acquire 1.16 million PDS common shares, equivalent to an 18.62% stake, the PSE said in a regulatory filing on Wednesday.
The entities signed term sheets in December last year as part of the PSE’s P2.32-billion deal with various shareholders to purchase their PDS shares as part of merging the local capital markets.
The deal comprised 3.87 million PDS shares at P600 apiece, equivalent to a 61.92% stake.
The PSE signed term sheets with BAP for its shares and those owned by BAP Data Exchange and certain member-banks for a 28.83% stake, and with Mizuho Bank Ltd. for its 0.08% stake.
The bourse operator also signed share purchase agreements to acquire Singapore Exchange Ltd.’s 20% stake, Whistler Technologies, Inc.’s 8% stake, San Miguel Corp.’s 4% stake, the Investment House Association of the Philippines’ 0.65% stake, and Golden Astra Capital, Inc.’s 0.36% stake.
The PSE recently announced it would increase its stake in PDS to 88.44% by acquiring 250,000 PDS common shares from AIA Philippines Life and General Insurance Co., Inc., representing a 4% stake, under a share purchase agreement.
The PDS is the holding company that owns fixed income exchange operator Philippine Dealing and Exchange Corp., and the equities and fixed income securities depository Philippine Depository & Trust Corp.
The acquisition of PDS will provide investors with a facility to trade fixed income, equities, and other products in a unified marketplace, the PSE said. — Revin Mikhael D. Ochave
