PSE to Acquire 61.92 Percent of PDS for P2.32 Billion

The Philippine Stock Exchange, Inc. (PSE) is set to add 61.92 percent to its existing 20.98 percent stake in the Philippine Dealing System Holdings Corporation (PDS) after signing agreements with PDS shareholders on December 26, 2024.

At an acquisition price of Php 600.00 per share, PSE will be purchasing a total of 3.87 million PDS shares for Php 2.32 billion. The transaction cost was based on the Php 3.75 billion enterprise value of PDS.

Among the agreements signed today was the term sheet with the Bankers Association of the Philippines (BAP) for its shares and those owned by BAP Data Exchange, Inc. and certain member-banks for an equivalent of 28.83 percent of PDS. A term sheet was likewise signed with Mizuho Bank Ltd. for its 0.08 percent stake.

The Exchange also inked share purchase agreements with five other PDS shareholders. PSE will acquire Singapore Exchange Limited’s 20 percent stake; Whistler Technologies, Inc.’s 8 percent; San Miguel Corporation’s 4 percent; Investment House Association of the Philippines’ 0.65 percent; and Golden Astra Capital, Inc.’s 0.36 percent shareholding in PDS.

“These signed agreements bring us a step closer to achieving our objective of consolidating the equities and fixed income exchanges and realizing the synergies and efficiencies from this unified setup. This will also allow us to be instrumental in the growth and development of the Philippine capital market with the introduction of new products for various stakeholders as well as the implementation of risk management processes,” said PSE President and CEO Ramon S. Monzon

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

The transactions are subject to the customary closing conditions, including corporate approvals and delivery of closing certificates.