PSE plans stock rights offer

The Philippine Stock Exchange will undertake a stock rights offering to fund its acquisition of the Philippine Dealing System.

This was in lieu of an earlier plan to issue P2.8 billion worth of shares to the public.

In a disclosure, the PSE said the issuance is part of the company’s plan to merge with the Philippine Dealing and Exchange Corp,. the country’s fixed income exchange.

“This issuance is part of the company’s compliance plan to align the shareholder ownership with the limits set by the Securities and Regulation Code. The proceeds of the offering will be used to fund the acquisition of PDS and working capital requirements of the exchange,” the PSE said.

According to the PSE, the merger of the local bourse and the PDEX would be a major step toward having a robust Philippine capital market.

PSE president Ramon Monzon said they have already filed with the Philippine Competition Commision an application to merge with the PDEX. It is the second time the PSE filed a notice for the planned merger.

SEC commissioner Ephyro Amatong, meanwhile, said yesterday that the SEC continues to hold a dialogue with the PSE regarding its plan to merge.

In March last year, the SEC thumbed down PSE’s request for exemptive relief from the 20 percent limit on ownership of an exchange.