PSE acquires additional 4% stake in PDSHC

MANILA, Philippines — The Philippine Stock Exchange Inc. has signed an agreement to acquire an additional four percent of the Philippine Dealing System Holdings Corp. (PDSHC).

In a disclosure yesterday, the PSE said it acquired the 250,000 shares held by Philam in PDSHC.

The acquisition is part of the PSE’s plan to merge the stock exchange and the PDSHC.

The PSE signed similar agreements in recent months. These include the acquisition of the shares of  Bankers Association of the Philippines, Whistler Technologies Services and the Investment Houses Association of the Philippines in PDHSC.

The purchases are still subject to the approval of government agencies, particularly the Securities and Exchange Commission (SEC) and the Philippine Competition Commission.

The PSE operates the local bourse while the PDS Group operates the PDex, the country’s fixed-income platform.

The two exchanges are moving to consolidate to offer additional value to issuers, investors, and other market participants.

PSE officials have been seeking the support of the Department of Finance, the Bangko Sentral ng Pilipinas and the SEC in the local bourse’s goal to consolidate the two exchanges.

The merger is expected to provide a more competitive landscape for capital market players.

The SEC, for its part, wants to ensure that the consolidation of the two exchanges will not lead to anti-competitive behavior in the Philippine capital markets.