Singapore-based financial company DBS Group Holdings Ltd. has so far failed to obtain regulatory approval to acquire a stake in Alliance Bank Malaysia Bhd. the Malaysian investment company Vertical Theme Sdn. This is reported by foreign media.
Temasek Holdings Pte. As a key shareholder of DBS and Vertical Theme, Sdn submitted separate applications to the central bank of Malaysia, Bank Negara Malaysia, about eight months ago, but has not yet received a response from the regulator. Temasek owns 49% of Vertical Theme shares through Duxton Investment&Development Pte and 28.3% of DBS shares. The remaining share of Vertical Theme belongs to RRJ Capital and Langkah Bahagia Sdn.
In 2024, Alliance Bank shares increased by 44%, increasing the market value to 7.6 billion ringgit ($1.7 billion). At the same time, DBS shares increased by 50% and are valued at $91 billion.
According to local law, Vertical Theme must submit an application to the central bank of Malaysia before negotiating the deal, which includes the sale of 29% of Alliance Bank's shares to Singapore's largest lender, DBS Group Holdings Ltd., followed by an increase to 49% of shares as part of a voluntary offer.
Malaysia currently has a 30% restriction on foreign ownership of commercial banks, but there has been recent talk that the government may relax this restriction in some sectors. Bank Negara Malaysia said it does not comment publicly on specific applications for the acquisition or disposal of shares in the shares of its regulated organizations.
DBS is interested in strengthening its position in Malaysia, where Oversea's Singaporean competitors, Chinese Banking Corp., are already present. and United Overseas Bank Ltd, and considers Malaysia, India and Indonesia as key markets for expansion. In particular, DBS submitted an offer to purchase PT Bank Pan Indonesia and received approval to increase its stake in the Chinese venture to 91%.
Vertical Theme Sdn Bhd is a Malaysian investment company with headquarters in Kuala Lumpur (Malaysia).
DBS Group is a Singapore—based financial holding company with the flagship asset of DBS Bank.
Alliance Bank Malaysia Bhd. — A Malaysian financial company in the field of Consumer Banking (mortgages, term loans, personal loans, credit cards), Business Banking (servicing medium-sized enterprises, corporate and commercial clients), Financial Markets (currency, hedging and investments) and Stockbroking&Corporate Advisory (stock trading, IPO, capital raising). The headquarters is located in Kuala Lumpur (Malaysia).
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