THE Philippine Stock Exchange (PSE) said on Tuesday it has signed a share purchase agreement with the Investment House Association of the Philippines for the bourse’s purchase of more than 36,000 shares in PDS Holdings Corp. (PDSHC).
The transaction is equivalent of 0.58 percent of the total issued and outstanding stock of the PDSHC with a purchase price of P320 per share, based on PDS’ adjusted equity value of P2 billion.
The transaction is in line with PSE’s goal to acquire a total of 1.99 million common shares of PDS representing
a 31.8 percent stake.
“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 local bourse said.
“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.
Last June 15, the PSE signed an agreement with the Bankers Association of the Philippines for the purchase of more than 1.4 million common shares of stock in PDS, equivalent to 23.8 percent of the total outstanding shares.
On July 6, it also purchased 500,000 common shares of stock in PDSHC from Whistler Technologies Services, Inc., equivalent to 8 percent of the total shares.
The purchase of the PDS shares is subject to certain closing conditions, which includes the grant by the Securities and Exchange Commission of any exemptive relief to PSE to own more than 20 percent of an exchange and the approval of the relevant regulatory agencies pursuant to law, among others.
“From a corporate standpoint, maintaining the business operations of both the PSE and PDS while reducing operational costs through synergies can result in greater business scalability and profitability. As the two companies have highly similar and integrated functions, there should be synergies that could be realized particularly from an infrastructure standpoint, particularly on the technology side,” the PSE said.
“For the market, the single exchange setup helps achieve efficiencies, reduce risks, and facilitate the development of new products,” it noted.