DBS Ups Stake in China’s Shenzhen Bank in S$376 Million Dealby Fintech News Singapore January 3, 2024
DBS Group announced its intention to raise its stake in China’s Shenzhen Rural Commercial Bank, a move valued at S$376 million (approximately US$285 million), according to Reuters. The transaction is subject to regulatory approvals.
The bank is set to increase its ownership in the Chinese bank from 13% to 16.69%. This expansion will involve the acquisition of 383.6 million shares at a price of 5.25 yuan per share, with the bank financing the transaction using its internal cash reserves.
This strategic move, aimed at seizing emerging opportunities in the Greater China region, follows negotiations between DBS and Shenzhen Huaqiang Asset Management Group throughout the year.
DBS is reportedly optimistic that the deal will have an immediate positive impact on its earnings and return on equity.
Featured image credit: DBS Bank