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RETAIL BANKING | Staff Reporter, Indonesia
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DBS inks a deal with Fullerton to acquire Bank of Danamon's major stakeholder

DBS plans to acquire remaining less than 30% listed shares from minor shareholders through amandatory tender offer of IDR7,000 per share.

DBS Group Holdings Ltd (DBS) has today entered into a conditional share purchase agreement with Fullerton Financial Holdings Pte. Ltd. (FFH) to acquire 100% of its wholly-owned subsidiary Asia Financial (Indonesia) Pte. Ltd. (AFI), which holds a 67.37% stake in PT Bank Danamon Indonesia Tbk (Danamon) for total consideration of IDR45.2 trillion (approximately S$6.2 billion1) based on an agreed price of IDR7,000 per Danamon share held by AFI. The total consideration would be paid in the form of 439 million new DBS shares at an issue price of S$14.072 per new DBS share.

Upon completion of the proposed acquisition, DBS will launch a mandatory tender offer (MTO) to acquire the remaining listed shares from the other shareholders of Danamon for a cash offer price of IDR7,000 per Danamon share. The price of IDR7,000 per Danamon share represents a premium of 56.3% over its one-month volume weighted average price (VWAP) per share of IDR4,480. Currently, DBS does not own any shares in Danamon.

Danamon is a leading full service commercial bank in Indonesia, with a nationwide presence of approximately 3,000 branch offices and outlets and approximately 6 million customers. It has a market leading presence in microfinance, auto lending and a growing business in the small and medium enterprises (SME) and retail segments.

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