DBS Buys Time on Takeover of Bank Danamon

The Wall Street Journal 3 June 2013
SINGAPORE—DBS Group Holdings Ltd., D05.SG -1.81% Southeast Asia’s largest bank by assets, secured an extra two months on its deadline to take over PT Bank Danamon, in what could amount to Indonesia’s largest-ever foreign investment.
DBS’s purchase of the Indonesian lender, if completed, would be valued at about $6.8 billion. But the deal, in which DBS would buy a controlling stake from Singapore state investment firm Temasek Holdings, faces significant regulatory hurdles.
Late last month, Indonesia’s central bank said DBS would be allowed to buy only a $2.75 billion, or 40%, stake in the midsize Bank Danamon, following rule changes limiting investments by foreigners. For DBS to get full control, Indonesian regulators said, Singapore would have to allow more Indonesian banks to open branches in the city-state, in what they called a “reciprocity” arrangement.

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