THE Philippine Stock Exchange (PSE) said it has signed insurer AIA Philippines Life and General Insurance Co. Inc. among the shareholders that will sell their stake in Philippine Dealing System Holdings Corp. (PDS), the Philippine securities registry and depository and fixed-income trading platform operator.
The PSE in a disclosure said AIA has a 4 percent stake in PDS.
AIA joins the Bankers Association of the Philippines (BAP), Singapore Exchange Ltd., Whistler Technologies Services Inc., San Miguel Corp., Investment House Association of the Philippines, Golden Astra Capital Inc., Mizuho Bank Ltd. and Financial Executives Institute of the Philippines Research and Development Foundation, which last month signed the share purchase agreement with the PSE for the PDS stakes.
The BAP has 28.8335 percent; Singapore Exchange, 20 percent; Whistler Technologies, 8 percent; SMC, 4 percent; IHAP, 0.65 percent; Golden Astra Capital, 0.3606 percent; Mizuho Bank, 0.08 percent; and Financial Executives Institute of the Philippines Research and Development Foundation, 1.54 percent.
The group is selling their stakes at a valuation of P600 per share which will cost the PSE P2.53 billion for all the stakes.
The PDS has been assigned an enterprise value of P3.75 billion.
These transactions are part of PSE’s plan to acquire all of PDS, of which it has a 20.98 percent stake at present, and consolidate its operation with the bourse.
This is to “align the Philippine capital market with other markets globally which have a single exchange structure for fixed income and equities,” the PSE said.
“The transaction results in a vertical integration of the depository function within the same group that operates trading, clearing and settlement of listed securities,” it added.
The PDS is the holding company that owns the Philippine Dealing and Exchange Corp., the operator of the fixed income exchange.
It also owns the Philippine Depository and Trust Corp. which serves as the depository for equities and fixed income securities.
