PSE-PDEX to give merger plan another try

The Securities and Exchange Commission (SEC) is now prepared to accept any application that may come from Philippine Stock Exchange (PSE) and the Philippine Dealing and Exchange Corp. (PDEX) as they revive their merger plans nearly five months after failing to get regulatory clearance.

SEC Chairperson Teresita Herbosa said although no formal application has been submitted to the agency, she was already informed that PSE and PDEX are indeed reviving their merger plans. "We don't have a formal application yet but yes, we've already been told that they are interested in re-filing the application and we did tell them, more or less that, ‘now you have our last letter, all the things that we require there, you're supposed to submit them to us'," Herbosa told reporters. She said that, this time, PSE and PDEX must carefully follow the instructions of the SEC as they will still be meticulous in terms of processing the application. "We wanted them to make a concrete plan on how to reduce the cost of the transaction. Also, they should come up with the definite permanent structure of the consolidated operations and the joining of the two companies," Herbosa reiterated.

"They say they are willing to comply this time. And also, we really want to approve applications rather than disapprove so I hope they really do," she added.

According to her, both parties are now putting together the documents needed as well as the new plans for the merger.

It was in the latter part of March this year when the SEC formally denied the application for the long-delayed merger of PSE and PDEX.

In its resolution, the Commission said the PSE failed to show that it is already ready to unify with PDEX.

The merger was supposed to happen after the PSE acquired 100 percent of Philippine Dealing System Holdings, Inc., the parent company of PDEX.

However, current laws bar ownership of more than 20 percent of an exchange by any group or sector.