- DBS Bank, Southeast Asia’s major banking entity is set to increase its stake in an unlisted Chinese bank from 13% to 16.69%.
- The bank also plans to acquire 383.6 million shares at a value of 5.25 yuan per share, while funding the transaction via internal cash resources.
- DBS Bank has been engaged with Shenzhen Huaqiang Asset Management Group since the start of the year for the acquisition of their interest in Shenzhen.
- The transaction is predicted to be instantly profitable for both earnings and return on equity, as stated by DBS Bank.
DBS Bank Expanding its Stake in Unlisted Chinese Bank
DBS Bank, a branch of the largest banking institution in Southeast Asia, has announced its plans to escalate its stake in an unranked Chinese bank by 16.69% from the current 13%.
Acquisition of Shares
The banking giant plans to purchase 383.6 million shares at an rate of 5.25 yuan per share. DBS has stated this initiative will be financed using its internal monetary resources.
Discussion with Shenzhen Huaqiang Asset Management Group
DBS bank has been in consistent talks with Shenzhen Huaqiang Asset Management Group since the year’s commencement, with an aim to purchase their stake in Shenzhen.
As per DBS Bank’s projections, the agreement is expected to be immediately beneficial to its earnings and returns on equity.
In terms of currency conversion rates, 1 Singapore dollar equals to 1.3206. Please note a correction in the per-share offer value from 5.52 to 5.25 yuan.
Impact on Trading Market
Given DBS Bank’s prominent position in Asia, this development could invigorate investor interest in Asian currency markets and equity securities, particularly with an increased focus on undeveloped Chinese banking assets.