The Philippine Stock Exchange is “on track” to get shareholders’ approval to revise its initial P2.25 billion offer to acquire the Philippine Dealing Systems Holdings Corp. (PDS Group) and integrate the equities and fixed income securities trading in the country.
“We still need to get shareholders approval by May 2. I think we’re on track. When the proposal was approved by the shareholders, we will proceed to the discussion of revising and coming up with the final proposal,” Hans Sicat, PSE president, said at the sidelines of Euromoney’s Philippine Investment Forum on Tuesday.
Earlier this month, Sicat said the Singaporean Exchange Limited (SGX) is just waiting for the adjusted offer price of its 20 percent stake in PDS as it sought a hefty price for its investment in the local fixed income trading platform.
The PSE has been eager in acquiring 100 percent of the PDS Group to merge equity and fixed income bond dealings and trading in one platform. The exchange has previously courted the BAP and other minority shareholders for this purpose.
PSE has 54.24 percent interest in PDS Group, which is below the mandated 67 percent shareholdings to gain control.
Sicat said the PSE has been focused on its target of having two-thirds controlling interests in PDS Group to be able to merge the two trading platforms instead of operating only the bond-trading platform as a subsidiary.
Before the acquisition plans, PSE owned 20 percent of the PDS. Other stakeholders were BAP (28.9 percent), SGX (20 percent) and the minority shareholders (31.1 percent).
The PSE is looking at transforming the system of the PDS into a “true auction market” for bonds and to raise participation of traders and regulators across the table.