PSE raises stake in bond market and forex operator

The Philippine Stock Exchange Inc. (PSE) has entered into a share purchase agreement to increase its stake in Philippine Dealing System Holdings Corp. (PDSHC), ahead of a planned acquisition of the bond and foreign exchange markets operator.

In a regulatory filing submitted by Aissa Encarnacion, corporate information officer of PSE Inc., the exchange said it has entered into an agreement with San Miguel Corp. (SMC) to buy the conglomerate’s shareholdings in Philippine Dealing System.

The PSE and SMC signed a share purchase agreement covering 250,000 common shares in Philippine Dealing System held by SMC, equivalent to 4 percent of the total issued and outstanding stock of PDSHC.

The PSE noted the agreement was signed on Friday, January 12, and the total transaction cost was P80 million or P320 per share.

The PSE now owns 61.03 percent of PDSHC. Under the terms of the deal, the PSE will pay San Miguel P73,508,468.03 on closing of the transaction with the balance of P6,491,531.97 to be held in escrow.

“The purchase is subject to certain closing conditions including the approval of the Securities and Exchange Commission, and compliance with the provisions in the articles of incorporation of PDS, among others,” the PSE noted.

The PSE previously signed a similar agreement with the Bankers Association of the Philippines (BAP) Credit Bureau covering 1,466,800 common shares equivalent to 23.47 percent equity stake in PDSHC.

Separate purchase agreements were also signed with Whistler Technologies Services Inc. for 500,000 common shares (8 percent), as well as with Investment House Association of the Philippines for 36,446 common shares (0.5831 percent), Philippine American Life and General Insurance Co. for 250,000 common shares (4 percent), and Financial Executives Institute of the Philippines Research and Development Foundation for 192,776 common shares (3.0844 percent).

“All of the above-mentioned purchases shall be subject to the approval of government agencies, particularly the Securities and Exchange Commission (SEC) and Philippine Competition Commission (PCC) as required by law and regulation,” the PSE said.

The planned acquisition of PDSHC was deemed approved by the antitrust commission, which was mandated to review all business transactions valued at P1 billion and above.

PSE president Ramon Monzon said earlier they were working to get SEC approval for the transaction to proceed and integrate the fixed-income and capital markets under one roof.

(GMA News Online)