PSE seals fresh deal in PDS takeover

The Philippine Stock Exchange Inc. (PSE) is nearing a near-total takeover of Philippine Dealing System Holdings Corp. (PDSHC) after striking a deal to acquire the Development Bank of the Philippines’ (DBP) 3.08-percent stake, tightening its grip on the country’s stock and bond market infrastructure.

In an amended regulatory disclosure on Wednesday, the PSE said it signed a share purchase agreement with DBP on 27 October covering 192,776 common shares of PDSHC.

The latest transaction could raise the exchange’s ownership in PDSHC to approximately 97.63 percent from its currently disclosed 94.55 percent, bringing it closer to its target of acquiring the entire company.

At the disclosed acquisition price of P600 per share, the DBP stake is valued at approximately P115.67 million.

The transaction remains subject to customary post-closing conditions.

The acquisition is part of the PSE’s consolidation program to bring the country’s equities and fixed-income markets under a single exchange structure.

PDSHC owns Philippine Dealing & Exchange Corp., which operates the country’s fixed-income trading platform, and holds a 97.72-percent stake in Philippine Depository & Trust Corp.

The PSE has been acquiring shares from major financial institutions and corporate investors to secure full ownership of PDSHC.

Its acquisition program covers approximately 4.80 million shares, equivalent to 76.74 percent of PDSHC’s outstanding capital stock, with an aggregate disclosed purchase price of P2.76 billion.

“From a corporate standpoint, maintaining the business operations of both the PSE and PDS while reducing operational costs through synergies can result in greater business scalability and profitability,” the PSE said in its regulatory disclosure.

The exchange expects the consolidation to streamline trading, clearing, settlement, and depository operations while reducing costs through shared infrastructure, particularly in technology.

The integration could also pave the way for new offerings, including derivatives, while strengthening market surveillance and risk management.