The revised request should have a better chance of being approved by Malaysia’s central bank
Singapore’s biggest bank DBS DBS Group Holdings Ltd has withdrawn an application to start talks to buy as much as 49 per cent of Alliance Bank Malaysia Bhd, replacing it with one to acquire up to 30 per cent instead, people with knowledge of the matter said.
DBS made the decision after failing to get approval from the Malaysian central bank for its initial request, which would’ve required a waiver because generally a company can only buy as much as 30 per cent of a financial institution in the country, the people said.
The revised request should have a better chance of being approved by Bank Negara Malaysia, the people said, asking not to be identified because the information is private.
That would pave the way for DBS to engage with Alliance’s largest shareholder, Vertical Theme Sdn, a Malaysian holding company backed by Singapore state investor Temasek Holdings Pte, the people said. Temasek has a 49 per cent stake in Vertical Theme via Duxton Investment & Development Pte. It also holds about 28.3 per cent of DBS.
Representatives for DBS and Vertical Theme declined to comment. A spokesperson for Alliance said the company wasn’t aware of the matter. A representative for the Malaysian central bank said BNM doesn’t comment on applications of acquisitions or disposals of interest in shares of regulated entities.
An Alliance deal would give DBS a footprint in Malaysia, where Singaporean rivals Oversea-Chinese Banking Corp. and United Overseas Bank Ltd already have a presence. DBS is Southeast Asia’s largest bank by total assets.
The revised request should have a better chance of being approved by Bank Negara Malaysia, the people said, asking not to be identified because the information is private.
That would pave the way for DBS to engage with Alliance’s largest shareholder, Vertical Theme Sdn, a Malaysian holding company backed by Singapore state investor Temasek Holdings Pte, the people said. Temasek has a 49 per cent stake in Vertical Theme via Duxton Investment & Development Pte. It also holds about 28.3 per cent of DBS.
Representatives for DBS and Vertical Theme declined to comment. A spokesperson for Alliance said the company wasn’t aware of the matter. A representative for the Malaysian central bank said BNM doesn’t comment on applications of acquisitions or disposals of interest in shares of regulated entities.
An Alliance deal would give DBS a footprint in Malaysia, where Singaporean rivals Oversea-Chinese Banking Corp. and United Overseas Bank Ltd already have a presence. DBS is Southeast Asia’s largest bank by total assets.
Source: Bloomberg