PSE eyes more deals for higher stake in PDS

The Philippine Stock Exchange, Inc. (PSE) is expected to finalize additional deals this week to increase its stake in the Philippine Dealing System Holdings Corp. (PDS) as part of its ongoing effort to consolidate the local capital market infrastructure.

“I think we’ll be closing Citicorp (Capital Philippines, Inc.) by next week, together with Tata (Consultancy Services Asia Pacific Pte. Ltd.) maybe,” PSE President and Chief Executive Officer Ramon S. Monzon told reporters last week.

A PSE regulatory filing dated April 3 showed that financial advisory company Citicorp holds a 3.1% stake in PDS, equivalent to 193,824 shares, while information technology and consulting company Tata Consultancy has an 8% ownership, corresponding to 500,000 shares.

Meanwhile, Mr. Monzon said the PSE is facing challenges in closing the deals for the stakes in PDS held by foreign banks.

“We’re having problems with the foreign banks. I don’t think we’ve closed JP Morgan and another one,” he said.

JP Morgan Chase Bank holds a 0.08% stake in PDS, corresponding to 5,000 shares.

On April 3, the PSE increased its stake in PDS to 79.94% after closing the acquisitions of stakes held by state-led pension fund Social Security System (SSS) and Insular Investment Corp.

SSS held a 1.54% stake in PDS, equivalent to 96,388 shares, while Insular Investment also finalized the sale of its 0.0645% ownership, or 4,030 shares.

The PDS operates the Philippine Dealing and Exchange Corp., Philippine Depository and Trust Corp., and Philippine Securities Settlement Corp.

In December last year, the PSE announced that it was purchasing a 61.92% stake in PDS for PHP 2.32 billion. The market operator is acquiring 3.87 million PDS shares at PHP 600 apiece.

Prior to the acquisition, the market operator had a 20.98% stake in PDS.

For 2024, the PSE recorded a 57.5% jump in its net income to PHP 1.21 billion from PHP 766.31 million in 2023 after its takeover of PDS. — Revin Mikhael D. Ochave