The Philippine Stock Exchange (PSE) will finalize the acquisition of the Philippine Dealing System Holdings Corp (PDS) in July at a price valuation of P2.25 billion, PSE President Hans Sicat said.
“We’re moving ahead with the transaction. It is still in the valuation P2.25 billion, and we expect it to close by the end of July,” Sicat told reporters after the PSE annual stockholders meeting last Saturday.
He said the purchase of 67 percent controlling stake in the fixed income trading platform, which was approved by stockholders, would be sourced from cash and credit lines.
“We can source it from purely credit lines, but we’ll use over a billion cash and the rest is credit lines,” Sicat said.
The PSE president said the bourse is waiting for a formal response to their offer from the PDS shareholders Bank Association of the Philippines (BAP) and the Singaporean Exchange Limited (SGX).
Sicat said the formal responses are expected within “one or two weeks” after the stockholders approved the P2.25 billion price for the buyout.
Before the approval of the P2.25 billion price, Sicat said he was open to possible revision of the pricing to make the offer attractive to SGX, which owns 20 percent stake in PDS.
The PSE is keen into buying the fixed income trading platform in a bid to consolidate the equities and bonds trading.
PSE own 20 percent of the PDS while the other stakeholders were BAP (28.9 percent), SGX (20 percent) and the other minority shareholders (31.1 percent).
PSE stockholders approved the reinstatement of 14 of the 15 PSE board of directors for a fifth term. Independent director Cornelio T. Peralta resigned and was replaced by new independent director Ramon Monzon.
Sicat retained in his post, while Jose Pardo was re-elected as the chairman.
The 14 board members, who were reinstated, were Emmanuel Bautista, Anabelle Chua, David Chua, Francis Chua, Dakila Fonacier, Eddie Gobing, Amor Iliscupidez, Edgardo Lacson, Eusebio Tanco, Robert Vergara, Alejandro Yu, and Ma. Vivian Yuchengco.