Landbank awaits go-signal for purchase of PDS shares

MANILA, Philippines — State-run Land Bank of the Philippines remains hopeful it will be able to proceed with the purchase of the shares of the Philippine Dealing System Holdings Corp. (PDSHC) within the year as the transaction is just waiting for President Duterte’s approval.

In a text message to The STAR, Landbank president and chief executive officer Cecilia Borromeo said the bank is now waiting for the Office of the President’s green light for the proposed acquisition of PDSHC shares.

Borromeo said the bank is hoping to obtain regulatory approval within the year.

According to Borromeo, Landbank is acquiring a 49 percent stake in PDSHC. This is lower than the original goal of at least 66.67 percent to preserve the company’s status as a private entity.

As per initial talks with the stakeholders, Borromeo said Landbank would likely hit this target.

However, Borromeo said the offer price could still be adjusted before the transaction. “Price might be adjusted based on the latest valuation shortly before the actual purchase,” she said.

Last year, Landbank’s offer to the company’s shareholders was P215 per share, lower than the initial price of P360.

The bank said the purchase price was based on the net asset value of P980.61 million, with any excess accrued as dividends to existing shareholders.

PDSHC is a holding company under the PDS Group, together with other subsidiaries, namely, the Philippine Dealing and Exchange Corp., Philippine Depository and Trust Corp., Philippine Securities Settlement Corp., and PDS Academy for Market Development Corp.

According to PDSHC’s website, the Philippine Stock Exchange owns 21 percent of the company’s shares, followed by Singapore Exchange Ltd., which holds 20 percent. Around 28.9 percent is owned by members and institutions of the Bankers Association of the Philippines. The remaining 30.1 percent is owned by various companies.

Landbank’s board of directors approved the acquisition of the fixed-income bourse’s shares in 2018.

The bank said the acquisition of a larger stake in PDSHC would help strengthen its financial position and contribute to the development of the domestic capital market.

This would allow small and medium enterprises, as well as other sectors to raise capital through securities, Landbank said.