Corporate News

PSE waiting for SEC okay on proposed PDS takeover

Posted on February 08, 2016

THE PHILIPPINE Stock Exchange, Inc. (PSE) is still hoping for a positive resolution to the much-awaited unification of the country’s equity and fixed-income trading platform despite delays in securing regulatory approval.

THE TRADING BOARD at the Philippine Stock Exchange is seen in this Dec. 27, 2013 file photo. -- BW FILE PHOTO
“We are waiting for the feedback. We are keen on closing the transactions so hopefully there will be a favorable action from the Securities and Exchange Commission (SEC),” PSE Chief Operating Officer Roel A. Refran said in a telephone interview.

The PSE beat the extended deadline on Jan. 26 to complete the requirements to win regulatory clearance to acquire more than 20% of PDS Holdings, Inc.

SEC Commissioner Ephyro Luis B. Amatong said a team is evaluating the latest filing of the PSE.

“We will try to decide as soon as possible,” Mr. Amatong said in a mobile phone message.

The SEC would have 60 days from the date of submission of the documentary requirements to issue a decision on the former’s petition.

To recall, the PSE failed to secure the go-signal from the SEC on Nov. 27 last year for its petition to acquire more than 20% of PDS, the holding company that owns the country’s sole fixed-income trading platform Philippine Dealing and Exchange Corp.

The approval was necessary to close the share purchase agreements (SPA) between the PSE and PDS shareholders, which expired on the same day.

The SEC then sent a 17-page letter to the bourse on the same day that detailed the list of items that the latter should clarify on its planned buyout of PDS shareholders. The PSE had 15 days to address the issues, but secured regulatory approval to extend the deadline by another 45 days.

SEC Chairperson Teresita J. Herbosa has acknowledged that the integration of the two exchanges was necessary to boost the capital market.

So far, the PSE has signed SPAs with the Bankers Association of the Philippines, Finex Research and Development Foundation, Inc., Whistler Technology Services, Inc., and Insular Investment Corp.

The four shareholders own a cumulative 40.06% stake in PDS. The PSE holds 20.98%. -- Krista Angela M. Montealegre