PSE hopes to close purchase of BAP stake in PDS in 2 weeks

Posted at 08/18/14 10:43 AM

MANILA, Philippines (UPDATE) - The PSE is getting closer to merging the stock and bond markets of the Philippines.

PSE president Hans Sicat says they expect to sign a purchase deal with the Bankers Association of the Philippines within the next two weeks, following their P650 million offer to buy a close to 30 percent stake in PDS held by BAP and its clients.

The offer values the whole of PDS at P2.25 billion.

"We are the only natural buyer in terms of any other one who wants to buy a stake. I guess for those who want to monetize their position in PDS, interestingly enough because the project has been around, while it's a cash generating company it has not been paying enough cash dividends to its shareholders. i think there monetary incentive for people to cash out today," Sicat said.

The PSE has been working on raising its ownership in PDS from its current 20 percent stake since last year.

It is also looking to buy the Singapore Exchange's 20 percent share in PDS, but there is no update on those negotiations. - ANC