PSE resumes effort to merge with PDS

By Riza Lozada

The Philippine Stock Exchange, Inc. (PSE) signed an agreement with the Bankers Association of the Philippines (BAP) to resume discussions on the proposed purchase of BAP’s 28.9 percent stake in the Philippine Dealings System Holdings Corp. (PDS). The PSE has a 20.98 percent own­ership in PDS.

At stake in the negotia­tions are 1,807,094 common shares of stock of BAP invest­ed in PDS.

“This occasion under­scores our commitment to see a unified equities and fixed income exchange. We remain cognizant of the advantages of this consolidation to cap­ital market stakeholders and the Philippine economy and we hope to realize these bene­fits the soonest possible time,” said PSE President and CEO Hans Sicat.

BAP President Nestor Tan said the planned consolidation of both exchanges will help shape a better capital market for the Philippines.

“We welcome this oppor­tunity to bring this deal into completion with the PSE. BAP remains supportive of the goal to have a more efficient finan­cial market through this trans­action,” Tan said.

PSE and BAP intend to sign a new share purchase agreement that will outline the terms of the acquisition, in­cluding securing the necessary regulatory approvals.

The PDS is the holding company that owns the Philip­pine Dealing Exchange Corp, the operator of the fixed in­come exchange. It also owns the Philippine Depository and Trust Corp. which serves as the depository for equities and fixed income securities.

The amended share pur­chase agreement is agreed to be finalized not later than May 2017.