The Philippine Stock Exchange Inc. (PSE) is strengthening its foothold in the country’s fixed-income market with a deal to acquire a majority stake in the Philippine Dealing System Holdings Corporation (PDS).

In a statement, the stock market operator announced it signed an agreement on December 26, 2024, to purchase an additional 61.92% of PDS, increasing its stake from 20.98% to 82.90%.

The acquisition will involve the purchase of 3.87 million PDS shares at P600 each, valued at P2.32 billion. The transaction is based on PDS’s P3.75-billion enterprise value.

As part of the deal, the PSE will acquire 28.83% of the PDS from the Bankers Association of the Philippines (BAP), along with shares from BAP Data Exchange Inc. and certain member banks. Additionally, it has signed a term sheet to buy a 0.08% stake from Mizuho Bank Ltd.

The local bourse has also reached share purchase agreements with other PDS stakeholders, including Singapore Exchange Ltd. (20%), Whistler Technologies Inc. (8%), San Miguel Corporation (4%), Investment House Association of the Philippines (0.65%), and Golden Astra Capital Inc. (0.36%).

The move is seen as a significant milestone for the Philippine capital market, positioning the PSE as the sole marketplace for both equities and fixed-income securities.

“These signed agreements bring us a step closer to achieving our objective of consolidating the equities and fixed-income exchanges and realizing the synergies and efficiencies from this unified setup,” said PSE president and CEO Ramon Monzon.

“This will also allow us to be instrumental in the growth and development of the Philippine capital market with the introduction of new products for various stakeholders as well as the implementation of risk management processes,” he added.

The PDS operates the Philippine Dealing & Exchange Corporation (PDEX), the country’s fixed-income exchange, and the Philippine Depository & Trust Corporation, which manages the depository for both equities and fixed-income securities.