The Philippine Stock Exchange (PSE) has extended its agreement with Singapore Exchange Limited (SGX) and the Bankers Association of the Philippines (BAP) that will lead to the local bourse acquiring SGX and BAP’s stake in Philippine Dealing Systems Holdings Corp. (PDS).
In a disclosure it posted on its website, the PSE reported that it executed separate agreements with SGX and the BAP, which extended the terms of the memoranda of agreement (MOAs) executed to November 30, 2013.
The MOA originally sets out the preparatory steps to be undertaken by the parties in pursuance of the proposed acquisition by PSE of the shareholdings of SGX and BAP in PDS, which operates the fixed-income exchange and securities depository in the country.
Collectively, the BAP through its member banks, and SGX, own approximately 45 percent of PDS Holdings while the local bourse owns 20 percent.
Under the aforementioned MOAs, the terms of the agreement would have expired on August 18 but the parties agreed to amend the agreements to extend the terms to November 30.
In late May, local bourse announced that it signed MOA with the members of the BAP and SGX to work toward the consolidation of the PSE and the dealing system.
The agreements signed by exchange with the banking group and SGX basically provide the framework for discussions, and developing a plan that may be pursued by the different parties involved to consolidate the operations of the PSE and the dealing system.
Madelaine B. Miraflor