Dominguez hits PSE foot-dragging on PDS stake sale

Finance Secretary Carlos G. Dominguez III struck the Philippine Stock Exchange (PSE) over the bourse’s perceived foot-dragging in finalizing the sale of its stake in the Philippine Dealing System Holdings Corp. (PDS Group).

According to the government’s chief economic manager, the PSE’s conditions “keep on changing” despite efforts of the Land Bank of the Philippines to close the deal as soon as possible.

“I’m really at a loss,” Dominguez told reporters. “It’s simple, you want to sell or not, that’s the only question don’t give me other conditions.”

While the negotiations for the sale of PSE’s 20.98 percent shareholding in PDS are ongoing, Dominguez disclosed that the bourse wanted other minority shareholders to be involved in their share-purchase agreement.

“This afternoon [Wednesday], I heard they were supposed to sign now, [but] PSE wants to sign together with BAP [Bankers Association of the Philippines] but BAP has no shares,” Dominguez explained.

BAP owns 0.66 percent stake in PDS Group, which for Dominguez “it’s nothing.”

“I don’t want to sign for 0.66 percent,” the finance chief declared. “Why are you putting these conditions? It’s a simple share purchase agreement, you want to sell your share, we will sign.”

Asked what will the government could do to resolve the issue with the PSE, Dominguez admitted “I don’t know what to do actually.”

“I’m just saying here, do you want to offer the shares? Do you want to sell or you don’t want to sell? It’s very simple, there’s an offer c’mon sign up. Why all these conditions? I have no idea,” Dominguez said.

Meanwhile, Dominguez, who is also the Land Bank chair, said the he now wants other PDS shareholders to enter into a nondisclosure agreement (NDA) with the state-owned lender.

“What I told Alex, we have to get NDAs for all shareholder who want to sell,” Dominguez said, referring to Alex V. Buenaventura, Land Bank president and chief executive.