DBS Group Holdings has finalised a multi-billion dollar deal to purchase a majority stake in its Bank Danamon.
The Singaporean financier - which is Asia's largest bank by assets and employs 18,000 people - announced today (2 April) it has agreed to pay $7.24 billion to take control of its Indonesian counterpart, Reuters reports.
Piyush Gupta, chief executive of DBS, explained this agreement will change his organisation from being "11 per cent in high-growth markets" to maintaining an exposure to such sectors of around 33 per cent.
According to the terms of the deal, DBS will pay around $4.9 billion of the total sum in shares and the remaining amount in cash.
This represents a 52 per cent hike on the share price of Danamon and Roger Tan, chief executive officer of SIAS Research, said DBS must "explain and illustrate the synergistic value it will gain" to justify such a premium.
By Asim Shah