The Philippine Stock Exchange (PSE) intends to take hold of a controlling stake upon its merger with the Philippine Dealing Systems Holdings Corp. (PDS), which basically involves the consolidation of bonds and equity markets.
On the sidelines of the PSE-Asiamoney forum on Philippine Tourism, Leisure and Gaming, PSE President and Chief Executive Officer Hans Sicat told reporters that the local bourse “basically wants to get a controlling portion” from the merger with PDS.
PDS is the one operating the fixed-income exchange and securities depository.
Several days ago, PSE signed separate agreements with the Bankers Association of the
Philippines (BAP) and the Singapore Exchange (SGX), as they work on the consolidation of the bourse and PDS.
“We signed a MOA [memorandum of agreement]with the two because they are the largest stakeholders of PDS group. What we want basically is to get a controlling portion,” Sicat said.
The BAP, though its member-banks, and the SGX own approximately 45 percent of PDS, and the PSE, 20 percent.
“We will announce we are actually going to do. Basically, we would be acquiring those shares by giving our shares,” Sicat added.
When asked if the local bourse plans to take stakes from minority shareholders, Sicat said that the bourse is “doing a lot of internal works right now” and that it may still take months for the merger to be concluded.
“It will be for smaller players to tag along once we get through the valuation period as far as corporate governance issues is concerned,” Sicat further said.
For his part, BAP President Lorenzo Tan earlier said that there are possible synergies that could arise from the merger, which could hopefully help bring down costs related to the fixed-income-trading operations of banks and other financial institutions.
“We can leverage on the strengths of both exchanges to meet this objective,” he said.