PSE buys 23.8% BAP stake in PDS for P476.45 million

June 16, 2017

The Philippine Stock Exchange (PSE) has signed a new Share Purchase Agreement for the acquisition of the PDS Holdings Corporation stake of the Bankers Association of the Philippines (BAP), BAP Credit Bureau, certain member banks and other banks.

In a disclosure to the Philippine Stock Exchange, the PSE said they have agreed on the sale of 1.48 million PDS shares equivalent to 23.8 percent of the total issued and outstanding stock of the firm that owns the fixed income bourse.

However, the purchase shall be subject to the approval of government agencies, particularly the Securities and Exchange Commission (SEC) and Bangko Sentral ng Pilipinas (BSP), as may be required by law, and to the compliance with the provisions in the articles of incorporation of PDS.

The PSE must secure a grant by SEC of an exemptive relief to acquire additional shares in PDSHC resulting in ownership of more than 20 percent of an exchange.

The total purchase price is P476.45 million or P320 per share with P437.82 million to be paid on closing while P38.62 will be held in escrow until the approval of regulators as well as the satisfaction of other conditions.

“This transaction is envisioned to facilitate further growth in the local capital markets by introducing efficiencies in the trading and back office systems of both the equities and fixed income markets, among others,” said the PSE.

It added that the acquisition “is aimed at creating a better environment for the introduction of more products and services for the various market stakeholders, as well as the implementation of improvements in risk management processes.”