PSE takes PDS control via P2.32-B shares deal

Bourse operator Philippine Stock Exchange Inc. (PSE) is set to add 61.92 percent to its existing 20.98 percent stake in the Philippine Dealing System Holdings Corp. (PDS) to take control of the clearing house for security sales after signing agreements with PDS shareholders on 26 December 2024.

At an acquisition price of P600 per share, PSE will be purchasing a total of 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 yesterday was the term sheet with the Bankers Association of the Philippines for its shares and those owned by BAP Data Exchange Inc. and certain member-banks for an equivalent of 28.83 percent of PDS. A term sheet was likewise signed with Mizuho Bank Ltd. for its 0.08 percent stake.

5 PDS shareowners sold out

The Exchange also inked share purchase agreements with five other PDS shareholders. PSE will acquire Singapore Exchange Limited’s 20 percent stake; Whistler Technologies Inc.’s 8 percent; San Miguel Corporation’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 CEO Ramon S. 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 transactions are subject to customary closing conditions, including corporate approvals and delivery of closing certificates.