Landbank board approves purchase bid for PDS stake
State-run Land Bank of the Philippines is pushing through with its plan to purchase a controlling stake of the Philippine Dealing System Holdings Corp. (PDSHC) following the approval of the bank’s board of directors.
In a text message, Landbank president and chief executive officer Alex Buenaventura said the bank’s board, during its meeting, approved “in principle” the proposal to acquire 66.67 percent of PDSHC’s common shares.
“LBP board just approved in principle the proposal to acquire at least 66.67 percent common shares of Philippine Dealing System Corp. subject to compliance with all legal and regulatory requirements,” Buenaventura said.
The official said Landbank would still need to finalize the timetable of the acquisition, as well as the offer price to finalize the proposal.
Landbank currently owns 1.56 percent of PDSHC through the Bankers Association of the Philippines (BAP).
In his letter dated Jan. 16, Buenaventura cited the foreseen benefits of Landbank in acquiring PDS, including an increase in the bank’s profits and further development of the local capital market.
The PSE has been in advanced talks with the PDSHC regarding their planned merger, and has acquired the Philippine Competition Commission’s approval for the transaction. It also has 69.03 percent of the shares after signing a series of share purchase agreements with the PDS’ stakeholders.
PSE chairman Jose Pardo said the merger would proceed despite Landbank’s counteroffer.
Earlier, Finance Secretary Carlos Dominguez took a swipe at the PSE, saying it failed to comply with the 20 percent ownership limit of exchanges and exchange controllers as mandated under the SRC.
This, he said, has slowed down the development of the domestic capital market.
“The development of the capital market is being slowed down by the PSE’s protracted compliance with the law. The Duterte administration will no longer tolerate private institutions thwarting the goal of achieving a robust and inclusive financial system,” he said.