MANILA, Philippines – State-run Land Bank of the Philippines (Landbank) took another step to control the bond market with an offer to purchase the stake of the Philippine Stock Exchange (PSE) in Philippine Dealing System Holdings Corporation (PDSHC).
The PSE announced in a disclosure on Friday, April 27, that Landbank wants to purchase “its entire equity stake in PDSHC at P360 per share for a total purchase price of P472,118,040.”
“The offer is subject to certain conditions and is yet to be discussed by the company’s board of directors,” the PSE added.
The PSE currently holds a 20% stake in PDSHC, the holding firm which operates the country’s fixed-income or bond market.
Over the past few years, the PSE has sought to gain control of PDSHC to unify the equity and bond market platforms, but has run into trouble over regulatory issues.
In particular, it has yet to clear the Securities and Exchange Commission (SEC) requirement that no trading platform be more than 20% owned by brokers.
Back in March, Landbank stepped in and announced plans to acquire 66.67% control of PDSHC, offering P360 per share to its shareholders for a total of P1.5 billion. The due diligence was fast-tracked by its chairman, Finance Secretary Carlos Dominguez III.
This offer, which Landbank said it recently renewed, was also higher than the PSE’s previous offer to PDSHC shareholders of P320 per share, made in June 2017. – Rappler.com