Historic Move in Philippine Finance: PSE to Fully Acquire PDS Group

MANILA: The Philippine Stock Exchange (PSE) has received approval from the Securities and Exchange Commission (SEC) to proceed with its long-standing goal of acquiring Philippine Dealing System Holdings Corp. (PDS Group). This move is set to unify the country’s equities and debt markets, a plan nearly a decade in the making.

Key Developments:

Approval from SEC: The SEC has granted the PSE permission to apply for an exemption from the mandatory ownership and voting rights limits, once the negotiations for acquiring PDS Group are successfully completed.

PSE’s Ownership Goal: The PSE currently owns close to 21% of PDS Group and aims to acquire 100% ownership of the country’s fixed-income exchange.

Previous Attempts: The PSE nearly increased its stake in 2017 but was halted due to regulatory issues. The current value of PDS Group is likely higher than the previous valuation of about P2.2 billion, given the elevated interest in bond listings.

Market Impact: Bond listings this year have already surpassed P172 billion, almost double the P92 billion raised on the PSE in the first nine months of 2023.

Benefits of Unification: According to PSE chief operating officer Roel Refran, combining the PSE and PDS will offer a one-stop solution for multiple asset classes, benefiting investors and the development of the Philippine capital market.

Other Major Stakeholders: Besides the PSE, significant shareholders of PDS Group include BAP members and institutions, Singapore Exchange Ltd., Tata Consultancy Services Asia, and several others.

This strategic unification represents a major step forward in streamlining the country’s financial markets, enhancing efficiency, and broadening investment opportunities for the public.