Philippine Stock Exchange to take over PDS in P2.32-B deal

THE Philippine Stock Exchange, Inc. (PSE) is set to take over Philippine Dealing System Holdings Corp. (PDS) after buying the stakes of various shareholders in a deal worth P2.32 billion.  

In an e-mailed statement late Thursday, the PSE said it would buy 3.87 million PDS shares at P600 each for a 61.92% stake as part of its plan to unify local capital markets.    

The bourse has a 20.98% stake in PDS. The deal cost was based on the P3.75-billion enterprise value of PDS.  

PDS owns fixed income exchange operator Philippine Dealing and Exchange Corp. and Philippine Depository & Trust Corp.  

The PSE signed term sheets with the Bankers Association of the Philippines (BAP) for its 28.83% stake, as well as with Mizuho Bank Ltd. for its 0.08% stake.  

The market operator also signed share purchase agreements to acquire Singapore Exchange Ltd.’s 20% stake, Whistler Technologies, Inc.’s 8% stake, San Miguel Corp.’s 4% stake, Investment House Association of the Philippines’ 0.65% stake and Golden Astra Capital, Inc.’s 0.36% stake. — Revin Mikhael D. Ochave