DBS to pay S$9.1 billion for stake in Bank Danamon

Singapore-based DBS, whose goal is to become a leading Asia-wide bank, would initially pay S$6.2 billion in shares to buy a 67.37 per cent stake in Indonesia's Bank Danamon from Singapore state investor Temasek Holdings.

It would then buy out Danamon's minority investors for cash, with both the share and cash payments pitched at 7,000 rupiah (S$0.95) per Danamon share.

DBS said it would issue 439 million new shares to Temasek at S$14.07 each. The state investor already owns about 29 per cent of DBS.

When combined with DBS' existing Indonesian assets, the acquisition would make DBS the country's fifth-largest lender.

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