PSE raises PDS stake with SSS share purchase deal

State-led pension fund Social Security System (SSS) has sold its 1.54% stake in Philippine Dealing System Holdings Corp. (PDS) to the Philippine Stock Exchange, Inc. (PSE), bringing the market operator closer to full control of the fixed-income trading platform.

PSE is acquiring 96,388 common shares from SSS, the market operator said in a regulatory filing on Tuesday.

The two entities signed a share purchase agreement for the transaction.

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

“The acquisition is subject to the usual closing conditions,” PSE said.

As of Feb. 24, PSE holds a 78.33% stake in PDS, up from its initial 20.98% interest, as it moves to consolidate the local capital markets.

In December last year, PSE announced its acquisition of a 61.92% stake in PDS for PHP 2.32 billion. The market operator is purchasing 3.87 million PDS shares at PHP 600 per share.

“Our post-acquisition objectives will be focused on the seamless integration of both entities to fully realize the synergies, efficiencies, and risk management benefits,” PSE President and Chief Executive Officer Ramon S. Monzon previously said. 

“We will also continue to pursue and complete the initiatives that PDS has already started in the fixed-income and depository businesses to further expand investor participation and protection in our market,” he added. 

For 2024, PSE recorded a 57.5% increase in net income to PHP 1.21 billion from PHP 766.31 million in 2023, following its takeover of PDS.

“The three-year strategic plan we laid out last year included the acquisition of PDS, which should provide a significant boost to our market development initiatives and bottom line,” Mr. Monzon said. 

PSE shares rose 0.99% or PHP 1.80 to PHP 183.80 per share on Wednesday. — Revin Mikhael D. Ochave