THE Philippine Stock Exchange (PSE) has acquired a minority shareholder’s stake in Philippine Dealing Systems Holdings Corp. (PDS) anew, in a bid to buyout PDS for the integration of bonds and stocks trading into one platform.
In a disclosure, the PSE said it bought the 500,000 shares in PDS of minority shareholder Whistler Technologies Services Inc. on Wednesday, for a sum of P147.204 million or P294.4 per share.
This so far brings the PSE’s total stake in PDS to 61 percent, pending regulatory approval from the Securities and Exchange Commission (SEC).
Wednesday’s transaction was PSE’s second share purchase deal with a minority PDS stockholder, after it acquired last month the 3.08-percent stake in PDS of Finex Research and Development Foundation, Inc., another minority stockholder, for P69.39 million.
In July, the PSE took its first step to take control of PDS, as it reached an accord to acquire the Bankers Association of the Philippines’ 28.91-percent stake in PDS.
“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,” the PSE disclosure read.
“It 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,” it added.
PDS is the parent firm of Philippine Dealing and Exchange Commission (PDEX), which operates as an exchange for the trading of fixed income securities such as corporate debt notes or bonds.
Before the merger and acquisition plans, PSE owned 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).
The PSE is looking at transforming the system of the PDS into a “true auction market” in selling bonds to raise participation from traders and regulators across the table.
KRISTYN NIKA M. LAZO