PSE poised to accept FBDC offer

The Philippine Stock Exchange (PSE) is poised to accept the amended offer of Fort Bonifacio Development Corp. (FBDC) on the relocation of the PSE headquarters to Bonifacio Global City.

In a press briefing, PSE governor and building committee chairman Ismael Cruz said the revised proposal is "reasonable" although he said they would insist on further improvements in the terms, such as shortening the 10-year period before the asset could be turned over to the PSE and providing additional parking slots to brokers.

"But we hope we could do it (approve the proposal) within this month," Cruz said.

Last Sept. 26, FBDC presented a formal offer to host the new PSE headquarters and trading floor at a 2,200 sqm. area in Capital Place, the planned financial center of the Bonifacio Global City.

The stand-alone building will have a floor area of over 26,000 sqm., about half of which or 12,000 sqm. will be devoted to the PSE premises. Cruz said FBDC has agreed to put up the structure on shell condition through a new company or corporate vehicle under a co-arrangement scheme.

The six-man PSE building committee will meet later today to discuss the proposal but Cruz did not give any indications on the possible outcome of their meeting. The committee has as members five other brokers: Francis Chua, Robert Coyiuto Jr., Vivian Yuchengco, Eddie Gobing and Charles Shih. In addition, PSE chairman Felipe Yap and former PSE president Ramon Garcia sit as ex-officio members.

"It’s very hard for me to say if the (the offer) will be fully acceptable to the others. But it‘s a reasonable offer considering the state of the economy," Cruz said.

Once approved by the building committee, the proposal will be taken up by the board of governors and then presented to the entire membership for final approval.

In 1998, the PSE agreed to transfer to the Bonifacio Global City by 2004 since FBDC made a "far superior offer" over two other proponents – the Ayala group and the SM group.