Landbank starts due diligence on PDS

Land Bank of the Philippines has started due diligence on Philippine Dealing System Holdings Corp. (PDS) in line with its bid to acquire a majority stake in the latter, the state-run lender’s president, Alex V. Buenaventura, said yesterday.

“The Landbank board on Jan. 23 approved in principle the acquisition of at least 66.67 percent or a controlling interest in PDS. With the board approval, the only thing left to do is to finish our due diligence and report to the board,” Buenaventura said in a statement.

In relation to this, Buenaventura said he had met with Securities and Exchange Commission officials on Monday “to discuss the procedure for applying for a petition for exemptive relief with the regulatory body.”

Buenaventura had sought the meeting with the SEC as Landbank wanted to discuss the application process under Section 33.2 of Republic Act No. 8799 or the Securities and Regulations Code.

“We thank the SEC for accommodating our request, even on short notice. Rest assured that we will comply with all applicable laws in acquiring PDS,” he said.
The bank’s plan to acquire a majority stake in PDS runs counter to the planned merger of the latter with the Philippine Stock Exchange.

Finance Secretary Carlos G. Dominguez III, who chairs Landbank, earlier said the PSE was not complying with the conditions set for its merger with PDS.

“In September of 2016, I told PSE to be compliant with the law with regards to the allocation of their share to groups of shareholders as a condition to the SEC’s approval of its plan to acquire PDS. As of now, 16 months later, they are still not compliant,” Dominguez had said.

At present, Landbank owns 1.56 percent of PDS through the Bankers Association of the Philippines (BAP).