THE PHILIPPINE Stock Exchange has secured a P1.15-billion loan in line with plans to secure a controlling stake in Philippine Dealing Systems Holdings Corp. within the year.
The deal, which values PDS Holdings Corp. at P2.25 billion, paves the way for the unification of the domestic equity and fixed-income markets. The merger is strongly backed by President Aquino’s economic managers for its potential to bolster volumes and unlock huge savings.
The PSE said in a stock exchange filing on Thursday that its board had authorized the “clean term loan” from several banks, which it did not identify. The debt would carry a term of five years and was “for the purpose of financing the purchase of shares of stock from stockholders of PDS Holdings Corp.”
Aside from the PSE, which holds 21 percent, two other big shareholder groups are BAP and Singapore Exchange Ltd. (SGX). Other shareholders are San Miguel Corp., Philippine American Life and General Insurance Co. and Social Security System.
PSE president Hans Sicat said the operator of the country’s sole stock exchange was eyeing to increase its stake to about 70 percent before the end of 2015, published reports showed.
The local bourse earlier agreed to buy the 28.91 percent stake held by the BAP and some member-banks, which would hike its interest to nearly 50 percent. It afterwards launched a general offer to other shareholders of PDS. Recently, San Miguel Corp. agreed to sell its 4 percent interest.
The PSE board approved a formal offer to buy out other shareholders of PDS Holdings Corp. in August last year.