By Leslie D. Venson
MANILA, July 22 (PNA) — Philippine Stock Exchange (PSE) on Wednesday signed a deal to purchase the 28.91-percent stake of Banker’s Association of the Philippines (BAP) in Philippine Dealing Systems Holdings Corp. (PDS) for Php 650.55 million, with the goal of facilitating the development of new products and services.
In a disclosure, the PSE said the purchase would still need the approval of the Securities and Exchange Commission (SEC) and by any government agency as may be required by law, and to the compliance with the provisions in the articles of incorporation of PDS.
“Closing date will be agreed upon by the parties upon fulfillment of the conditions, but in no case later than 27 November 2015,” it said.
PSE believes that maintaining the business operations of both the PSE and PDS while reducing operational costs through synergies can result in greater business scalability and profitability.
“For the market, the single exchange setup helps achieve efficiencies, reduce risks, and facilitate the development of new products,” it added.
PSE said the transaction aimed to facilitate further growth in the local capital markets by introducing efficiencies in the trading and back office systems of both the equities and fixed income markets, among others. (PNA)