THE Philippine Stock Exchange (PSE) has withdrawn a merger notification—filed with the Philippine Competition Commission (PCC)—given the acquisition of a controlling interest in Philippine Dealing System Holdings Corporation (PDS).
“Basically, the IRR or the implementing rules and regulations of the PCC—if you buy 35 percent of the company, you have to make a filing … If you buy more than 50 percent of the company, you must make another filing,” PSE President and Chief Executive Officer Ramon Monzon told The Manila Times.
“When we initially filed with PCC, we owned less than 50 percent,” he added.
The PCC earlier on Wednesday announced the PSE’s withdrawal of the merger notice.
“Last September 4, the parties withdrew their notification. This was after a consultation with the PCC after we requested for more information,” PCC Commissioner Stella Luz Quimbo told reporters.
The PSE notified the PCC in May of its plan to merge with PDS for a total consideration of P2 billion.
Last month, bourse said it had signed a deal to acquire the Investment Houses Association of the Philippines’ (IHAP) stake in PDS, which would raise the PSE’s take to 53 percent.
“There were additional shareholders who sold to us so na-breach namin yung 50 percent, so sabi sa amin (they
told us) you have to refile again,” Monzon said.
“[N]ow we are refiling as a controlling purchaser,” he added.
Mergers worth at least P1 billion have to be cleared by the PCC.
“Lahat ng mga kinuwestyon nila at the end of phase one, pasasagutin namin sa second filing namin (All of their questions at the end of phase one, we we answer during the second filing),” Monzon said..
“In fact hopefully, this will make it faster because we’re back to phase one again. We expect to refile this week,” he added.