Tata Consultancy Services Asia-Pacific (TCS), an IT consulting services firm, has agreed to sell its 8 per cent stake in Philippine Dealing System Holdings Corporation (PDS Holdings) to the Philippine Stock Exchange (PSE) for P152.114 million ($3 million), the PSE said in a disclosure on Wednesday.
The acquisition of the 500,000 common shares of stock of TCS in PDS Holdings gives PSE a total of 69.03 percent ownership in the fixed-income exchange operator.
Based on the share purchase agreement, the acquisition of shares will be paid in a one-time payment arrangement at a discounted price, given the status of TCS as a non-resident foreign corporation.
“The purchase shall be subject to the approval of government agencies, particularly the Securities and Exchange Commission (SEC) and Bangko Sentral ng Pilipinas (BSP),” PSE said in its statement.
The TCS deal is the seventh share purchase agreement signed by PSE pertaining to its acquisition of additional shares in PDS Holdings.
In June last year, PSE entered into an agreement to acquire the 23.47 percent stake of Bankers Association of the Philippines in PDS Holdings, worth P437.8 million. It then proceeded to acquire the stakes of Whistler Technologies Services Inc (WTSI), Investment Houses Association of the Philippines (IHAP), the Philippine American Life and General Insurance Co., and the Financial Executives Institute of the Philippines Research and Development Foundation.
Early this month, the PSE signed a deal to acquire the 4 per cent stake of San Miguel Corporation in PDS Holdings for P80 million.
“This transaction is envisioned 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,” the PSE said.
Other major shareholders of PDS Holdings include the Singapore Stock Exchange, Development Bank of the Philippines, Social Security System, and Citibank NA.
PDS Holdings’ parent firm PDS Group is a capital market infrastructure that also owns and operates the Philippine Dealing & Exchange Corp (PDEx), Philippine Depository & Trust Corp (PDTC), Philippine Securities Settlement Corp (PSSC), and PDS Academy for Market Development Corp (PDSA).