DBS quits Bank of the Philippine Islands

Divests remaining 9.9% stake in leading Philippine bank.

DBS Group Holdings Ltd said its wholly-owned subsidiary, DBS Bank Ltd., has agreed to divest its remaining 9.9% stake in Bank of the Philippine Islands to GIC Private Ltd and Ayala Corporation for US$680 million in cash.

This follows the partial divestment undertaken by DBS in October 2012. The divestment supports DBS plan to focus on its core markets of Singapore, Hong Kong, China, Taiwan, India and Indonesia.

The transaction will be completed in two equal tranches: the first by the end of 2013 and the second in the first quarter of 2014. The transaction will realize a net gain of approximately US$358 million over the carrying value of the investment.

DBS is a leading financial services group in Asia, with over 250 branches across 15 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia.