PSE, BAP sign purchase agreement for PDS shares

The Philippine Stock Exchange, Inc. (PSE) signed a share purchase agreement (SPA) with the Bankers Association of the Philippines (BAP) covering the acquisition of BAP’s shareholdings in in the Philippine Dealing Systems Holdings Corporation (PDS).



PSE Chairman Jose T. Pardo said, “The support of the government, particularly the Department of Finance, the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission, played a vital role in bringing forth this transaction.  We continue to work with them to achieve our common goal of seeing a more robust Philippine capital markets.”



“This agreement brings us a step closer to our goal of having a unified exchange for equities and fixed-income products. We are grateful to the BAP for all their support to finalize this deal,” PSE President and CEO Hans B. Sicat said.



The PSE and BAP earlier inked a term sheet in October 2014 where both parties agreed, among others, to the P2.25 billion full firm value of PDS. The SPA signed by the parties will lead to the transfer of ownership of BAP’s equity interest in PDS to PSE upon completion of conditions that include regulatory approvals from the SEC. During the annual stockholders’ meeting in May 2015, the shareholders of the Exchange approved the increase to at least two-thirds PSE’s shareholdings in PDS.



“We are pleased to be part of this transaction that we believe will hasten growth and progress of the country’s capital market,” said BAP President Lorenzo V. Tan.



The PDS is the holding company that owns the Philippine Dealing Exchange Corporation, the operator of the fixed income exchange.  It also owns the Philippine Depository and Trust Corporation which serves as the depository for equities and fixed income securities.



“The consolidation of the equities and fixed-income exchanges is expected to offer additional value to issuers, investors, and other market participants at various levels. It will also provide a more competitive landscape for the Philippine capital markets,” Mr. Sicat added.



J. P. Morgan served as financial advisor to the PSE on this transaction.