PSE still hopeful on PH Dealing System Holdings deal

MANILA, Philippines – The Philippine Stock Exchange (PSE) is still hopeful that its request for exemptive relief to own at least two-thirds of the Philippine Dealing Systems Holdings Corporation (PDSHC) will be approved by the Securities and Exchange Commission (SEC).    

PSE has offered to acquire a majority stake in PDSHC based on an enterprise value of P2.25 billion ($47.63 million).

PSE said in a statement on Wednesday, December 23, that it is currently working on providing SEC with additional information on the proposed acquisition of PDSHC, the operator of the country’s fixed exchange.

The PSE has been given until January 26, 2016 by the SEC to clarify certain items about the PDS deal.

“We hope that the additional requirements we will provide will be sufficient basis for the SEC to approve our request to pursue this landmark transaction,” said PSE President and CEO Hans Sicat.

The PSE submitted its application for exemptive relief to the SEC in April 2015 after some of the major shareholders of PDSHC agreed to sell their stake to PSE, which already owns 20.98% interest in PDS Holdings.

The commercial aspect of the transaction has been completed and agreed with various shareholders of PDS Holdings. However, the share purchase agreements signed by the parties remain subject to regulatory approvals.

The deadline for the sale purchase agreements between PSE and PDSHC shareholders already expired on November 27, this year, as the exchange failed to get an exemptive relief from the SEC on the 20% ownership limit.

But PSE continues to work on the deal since none of the selling PDSHC shareholders notified the exchange that they are no longer interested in pushing through with the agreement.

Among the PDSHC shareholders are the Bankers Association of the Philippines; San Miguel Corporation; Golden Astra; Singapore Stock Exchange; Tata Consultancy Serves Asia; Computershare Technology Services; The Philippine America Life and General Insurance Company; Financial Executive Institute of the Philippines; Social Security System; and  Investment House Association of the Philippines.

“We are looking forward to a favorable action by the SEC so that we can be a step closer to completing the deal,” Sicat said. – Rappler.com