Landbank approves purchase of controlling stake in PDSHC

In an aggressive bid to acquire a majority control of the Philippine Dealing System Holdings Corp. (PDSHC), the Land Bank of the Philippines said yesterday its board has approved the purchase of the fixed-income bourse’s common shares at P360 apiece.

Landbank president and chief executive officer Alex Buenaventura said the bank’s board of directors has approved during its last meeting the price for the planned acquisition of at least 66.67 percent of the common shares of the PDSHC.

“In the Landbank board meeting held on Feb. 27, the board of directors approved Landbank’s proposed offer to purchase at least 66.67 percent of total PDSHC common shares at P360 per share," Buenaventura said in a text message.

Last month, the Landbank announced its plan to acquire a controlling stake of the PDSHC. The proposal, however, is in conflict with the plan of the Philippine Stock Exchange (PSE) to merge with the PDSHC.

Finance Secretary Carlos Dominguez said earlier the bank would make an “aggressive bid” to encourage the PDSHC’s existing shareholders to sell their stake.

Landbank currently owns 1.56 percent of PDSHC through the Bankers Association of the Philippines. If it successfully acquires at least 66.67 percent of the fixed income bourse, its stake would increase to 68.23 percent.

According to Buenaventura, the bond and foreign exchange platform was deemed “undervalued,” citing the June 15 share purchase agreement of the BAP and the PSE.

Buenaventura said the purchase of the common shares would prove to be a profitable investment for the bank.

Dominguez, for his part, emphasized the acquisition would enable the government to further develop the domestic capital market.

In line with the proposed acquisition, Landbank is also seeking the Securities and Exchange Commission’s approval to exempt the bank from the 20 percent ownership limit of exchanges and exchange controllers as mandated under the Securities Regulation Code.

In 2017, Landbank reported a net income of P14.05 billion, four percent higher than the P13.58 billion it posted in 2016.

The bank attributed the increase to the double digit growth in core revenues, particularly loans and investments.