www.thejakartaglobe.com - DBS Group Holdings, Southeast Asia’s largest bank, must sell shares of Bank Danamon Indonesia back to the public if it owns more than 80 percent of the lender after a takeover, according to the Indonesian bourse.
DBS offered to buy Jakarta-based Danamon for about $7.2 billion on April 2 in the biggest takeover by a Southeast Asian lender.
The bank would pay Singapore’s Temasek Holdings Rp 45.2 trillion ($4.9 billion) in new shares for its 67 percent stake and buy the remaining stock from other shareholders for Rp 21.2 trillion in cash. (source)
The share sale is part of Indonesia’s exchange rules requiring investors who buy more than 80 percent of a listed company through a tender offer to sell at least 20 percent of the stock back to the public within two years, according to Indonesia’s capital market supervisory agency.
DBS should comply with that rule, Eddy Sugito, listing director at the Indonesia Stock Exchange, said in a mobile-phone text message on Monday.
“We intend to keep the listing,” said Edna Koh, a Singapore-based spokeswoman at DBS.
She also referred to a DBS filing with the Singapore stock exchange last week, which said the lender would have to ensure it held no more than 80 percent of Danamon shares within two years of the acquisition, unless it received a waiver or extension from Indonesian authorities.
Acquiring Indonesia’s sixth-largest bank by assets would help DBS branch out from Singapore and Hong Kong to tap an economy that grew last year at the fastest pace since before the Asian financial crisis.
Trade and infrastructure finance as well as corporate and retail banking are among the promising areas in Indonesia, Southeast Asia’s biggest economy, Piyush Gupta, chief executive officer of the Singapore-based bank, said last week.
Bloomberg
Source: http://www.thejakartaglobe.com/corporatenews/dbs-told-80-is-cap-for-indonesias-bank-danamon/510293 - April 9, 2012
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