Pursuant to the merger of the Philippine Stock Exchange and the fixed-income exchange, the local bourse is hopeful that it could finalize the acquisition of shares in the Philippine Dealing Systems Holdings Corp. (PDS) within this year.
This is after the PSE’s acquisition of additional interest in PDS was moved to a later date.
On Friday, that PSE said it has extended its agreement with the Singapore Exchange Ltd. (SGX) and the Bankers Association of the Philippines (BAP) that will lead to the local bourse acquiring SGX’s and BAP’s stake in PDS.
Collectively, the BAP through its member banks, and SGX own approximately 45 percent of PDS Holdings while the local bourse owns 20 percent.
The agreement 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.
“It will be finalized November 30 this year. We’re working as hard as we can. We are in the middle of the process on many levels,” Hans Sicat, PSE president and chief executive officer, told reporters in a briefing held late Friday.
“We are hopeful [to finalize it within this year],” Sicat reiterated.
“I think as we all realize, these types of deals are more complex. I think it’s probably more complex given interlocking ownership, directorships. We are all extremely careful and process oriented here so nobody creeps up on governance and compliance issues,” he said.
In late May, the local bourse announced that it signed an agreement 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.