PSE targets 97% stake to complete PDS takeover

May 13, 2025 | 12:00am

MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) is putting the finishing touches on its takeover of the Philippine Dealing System Holdings Corp. (PDS), with a few more acquisitions on the table that will boost its stake to as high as 97 percent.

While the PSE may end up short on getting 100 percent ownership of PDS, PSE president and CEO Ramon Monzon told The STAR that the country’s stock market operator is working on a couple of deals to further raise its stake in the holding company that owns the Philippine Dealing & Exchange Corp. (PDEx).

“I think we will hit about 96 to 97 percent. We’re already at 91 percent,” Monzon said.

“What we are waiting for there that are still substantial are Development Bank of the Philippines and Land Bank of the Philippines. I think those are the big ones remaining,” he said.

DBP owns 192,776 shares representing a 3.08-percent stake in PDS, while Landbank holds 134,372 shares or 2.15 percent.

At present, PSE’s ownership in PDS stands at 91.32 percent from its original equity interest of 20.98 percent following closing of transactions with various PDS shareholders since December last year.

Once the share of DBP and Landbank are acquired, the PSE’s stake in PDS will increase to 96.55 percent.

The PSE in December 2023 secured the Securities and Exchange Commission (SEC)’s approval for its application for exemptive relief in its acquisition of additional shares in the PDS Group.

The commission en banc allowed the PSE to exceed the mandatory limit of 20 percent on ownership and voting rights in an exchange by an individual or an industry, granting it leeway to own up to 100 percent of the PDS Group, subject to certain conditions.

Upon securing the regulatory approval from the SEC, the PSE then started to engage the shareholders of PDS for the acquisition.

The acquisition is part of the PSE’s plan to align the Philippine capital market with other markets globally which have a single exchange structure for fixed income and equities through the transactions.

Monzon said that post-acquisition objectives would be focused on the seamless integration of both entities to fully realize the synergies, efficiencies and risk management benefits.

The PDS is the holding company that owns the PDEx, the operator of the fixed income exchange. It also owns the Philippine Depository & Trust Corp., which serves as the depository for equities and fixed income securities.

Some of the member banks of the Bankers Association of the Philippines are currently looking to acquire up to a 49-percent stake in PDEx as part of the sale of the group’s shares in PDS to the PSE.

“My agreement is I will sell them a certain percentage of PDEx provided they get the approval from the SEC,” Monzon said.

Monzon said they already have a valuation for the proposed sale, but declined to disclose it at present.

The deal will require SEC approval for exemptive relief from the 20-percent cap on the ownership of a single industry in an exchange.

Latest