{"id":150135,"date":"2018-01-31T01:18:00","date_gmt":"2018-01-31T06:18:00","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=150135"},"modified":"2018-01-31T01:18:00","modified_gmt":"2018-01-31T06:18:00","slug":"landbank-starts-due-diligence-on-planned-pdshc-share-purchase","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2018\/01\/31\/landbank-starts-due-diligence-on-planned-pdshc-share-purchase\/","title":{"rendered":"Landbank starts due diligence on planned PDSHC share purchase"},"content":{"rendered":"
\"Landbank<\/a>
Landbank President Alex V. Buenaventura on Monday met with officials of the Securities and Exchange Commission (SEC) in line with the bank\u2019s plan to purchase 66.67 percent stake in PDSHC. (Photo<\/a>: Land Bank of the Philippines\/Facebook<\/a>)<\/figcaption><\/figure>\n

MANILA \u2014 Land Bank of the Philippines (Landbank) started Tuesday its due diligence on planned purchase of the majority stake in the Philippine Dealing System Holdings Corp. (PDSHC).<\/p>\n

Landbank President Alex V. Buenaventura on Monday met with officials of the Securities and Exchange Commission (SEC) in line with the bank\u2019s plan to purchase 66.67 percent stake in PDSHC.<\/p>\n

In a statement Tuesday, Buenaventura said he had \u201ca very fruitful meeting\u201d with SEC officials five days after requesting for it to discuss the exemption under Section 33.2 of Republic Act (RA) No. 8799 ,or the Securities and Regulations Code, for the government-owned financial institution\u2019s move to acquire PDSHC shares.<\/p>\n

He said he was able to discuss with SEC officials the procedure for applying for a Petition for Exemptive Relief.<\/p>\n

Last January 23, the Landbank Board approved in principle Buenaventura\u2019s proposal to buy PDSHC shares to boost the bank\u2019s profit.\u201d<\/p>\n

\u201cWith the Board approval, the only thing left to do is to finish our due diligence and report to the Board,\u201d Buenaventura said.<\/p>\n

\u201cWe thank the SEC for accommodating our request, even on short notice. Rest assured that we will comply with all applicable laws in acquiring PDS,\u201d he added.<\/p>\n

The Landbank chief, in his Jan. 16, 2018 letter to the Board, said acquisition of PDSHC\u2019s common shares would increase the bank\u2019s profits and help \u201caccelerate development of capital markets in the country.\u201d<\/p>\n

To date, the bank has a 1.56 percent stake in PDSHC \u201cthrough the Bankers Association of the Philippines (BAP).<\/p>\n

This after BAP signed a Share Purchase Agreement on June 15, 2017 that allowed the Philippine Stock Exchange (PSE) to acquire 1,488,902 common shares equivalent to 23.8 percent of PDS\u2019s total outstanding stock for PHP 476,448,640 or at PHP320 per share.<\/p>\n

\u201cThis implies a valuation of PHP2 billion for PDS and a PE (price earnings) ratio of 8.10x based on 2016 PDS earnings,\u201d he said.<\/p>\n

PE ratio is the proportion of a company\u2019s share price vis-\u00e0-vis its per-share earnings.<\/p>\n

However, this valuation is lower than it should be and noted that \u201cresearch on the financials of comparable market infrastructure enterprises in the region and globally show that such businesses trade at an average LTM (last twelve months) PE ratio of 34.1x and 35.8x, respectively.\u201d<\/p>\n

\u201cThis indicates that at a price of PHP320 per share, PDS is undervalued and purchasing PDS shares could be a profitable investment for LBP,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA \u2014 Land Bank of the Philippines (Landbank) started Tuesday its due diligence on planned purchase of the majority stake …<\/p>\n","protected":false},"author":33,"featured_media":150136,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[31134,45338],"class_list":["post-150135","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-land-bank-of-the-philippines-landbank","tag-philippine-dealing-system-holdings-corp-pdshc","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/150135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=150135"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/150135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/150136"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=150135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=150135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=150135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}