THE Philippine Stock Exchange, Inc. (PSE) is increasing its stake in Philippine Dealing System Holdings Corp. (PDS) after closing agreements with two banks.
The market operator finalized accession agreements for the PDS shares held by two member banks of the Bankers Association of the Philippines (BAP).
The two banks sold a total of 17,500 PDS shares to the PSE, equivalent to a 0.28% stake.
Following the transaction, the PSE will beneficially own 91.6% of PDS, subject to post-closing conditions.
In addition to its existing 20.98% stake in PDS, the PSE completed transactions with Singapore Exchange Ltd., Whistler Technologies Inc., San Miguel Corp., Golden Astra Capital Inc., Financial Executives Institute of the Philippines Research and Development Foundation, Investment House Association of the Philippines, AIA Philippines Life and General Insurance Co. Inc., Social Security System, Insular Investment Corp., Citicorp Capital Philippines, Inc., Tata Consultancy Services Asia Pacific Pte. Ltd., Mizuho Bank, Ltd., and MUFG Bank, Ltd.
The market operator also finalized deals with BAP and some of its member banks.
In December last year, the PSE reached a P2.32-billion deal to acquire a 61.92% stake in PDS.
The deal involved acquiring 3.87 million shares at P600 apiece.
The market operator said the acquisition will align the Philippine capital market with other markets that have a single-exchange structure for fixed income securities and equities.
The move will also provide more efficient integrated market surveillance and monitoring for both equities and fixed-income markets to enhance investor protection.
“It will provide a single venue in the Philippines for listing and capital-raising, thereby making it easier for companies to tap both equities and debt markets,” the PSE said.
PSE shares fell by 1.69% or P3 to P175 apiece on Thursday. — Revin Mikhael D. Ochave