The Philippine Stock Exchange (PSE) is seeking further equity holdings in the Philippine Dealing System Holdings Corp. (PDS) of up to 97 percent via acquisitions of stakes currently held by some identified state-owned banks.
So far the PSE has secured up to 91.6-percent interest in PDS, portions of which are still subject to customary closing conditions.
Ramon Monzon, PSE president, CEO and executive director, said this would be possible if the exchange could acquire more equity in PDS held currently by the government-owned Development Bank of the Philippines (DBP), Land Bank of the Philippines and the Philippine Deposit Insurance Corp. (PDIC).
DBP holds a 3-percent equity in PDS, while LandBank holds 2.15 percent and PDIC 0.13 percent, said Monzon, who spoke at the PSE’s investors’ day event, Strengthening Access and Reach, over the weekend.
“It’s taking a long time for us to acquire these because, being government banks, they’re subject to certain rules before they can dispose of their investments,” Monzon said.
“And right now they’re trying to get an exemption to go into another public bidding before they can sell to PSE,” he added.
There are other PDS equity holders that the PSE would like to buy out but, at present, they could not be located.
Of the 91.6 percent interest by the PSE in PDS, 79.9 percent is now the exchange’s equity interest in PDS, Monzon said.
“So we‘re awaiting the developments there,” Monzon added.
The PSE eventually plans to unify the fixed income and equities markets to accelerate product development in the capital market.
The PSE also aims to fully integrate the stock market’s depository operations and create a strong risk management framework.
Monzon said the increased equity holdings in PDS has “transformed” the PSE’s financials, particularly its revenue mix, by introducing new income streams and boosting trading-related revenues.
