DBS to acquire Indonesia’s Danamon

The transaction will make DBS the fifth largest in Indonesia.

DBS Group Holdings Ltd has entered into a conditional share purchase agreement with Fullerton Financial Holdings Pte. Ltd. to acquire 100% of its wholly-owned subsidiary Asia Financial (Indonesia) Pte. Ltd., which holds a 67.37% stake in PT Bank Danamon Indonesia Tbk for total consideration of approximately S$6.2 billion.

Upon completion of the proposed acquisition, DBS will launch a mandatory tender offer to acquire the remaining listed shares from the other Danamon shareholders. Currently, DBS does not own any shares in Danamon.

A leading full service commercial bank in Indonesia, Danamon has 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.

DBS said its strategic intent is to become a leading Asian bank, with a more diversified revenue mix across its key markets in Greater China, South Asia and Southeast Asia. “The proposed acquisition of Danamon is in line with this strategy. In addition, it increases the revenue contribution from high growth markets with Indonesia becoming a top three revenue contributor to DBS, alongside Singapore and Hong Kong,” said DBS.