KUALA LUMPUR (April 2 ) : Singapore-based DBS Bank Ltd plans to acquire state investment arm Temasek’s 14.2% stake in Malaysia’s ALLIANCE FINANCIAL GROUP BHD [] (AFG).
In a statement to Bursa Malaysia on Monday, AFG said it has received notice from Temasek’s unit Duxton Investments Pte Ltd that DBS has obtained approval from Bank Negara Malaysia to start negotiations on the planned acquisition.
According to AFG, DBS intends to acquire Duxton’s 49% stake in Vertical Theme Sdn Bhd which, in turn, owns 29.06% in AFG. Langkah Bahagia Sdn. Bhd owns the balance 51% in Vertical Theme.
“Accordingly, Temasek’s effective interest in AFG stands at 14.2%. The proposed transaction if successfully negotiated and completed, is not envisaged to trigger a takeover offer for AFG,” the Malaysian financial services entity said.
AFG shares rose 13 sen to RM4.02 at 11.05am. At that price, Temasek’s 14.2% stake comprising some 220 million shares is worth some RM884 million.
In a statement to Bursa Malaysia on Monday, AFG said it has received notice from Temasek’s unit Duxton Investments Pte Ltd that DBS has obtained approval from Bank Negara Malaysia to start negotiations on the planned acquisition.
According to AFG, DBS intends to acquire Duxton’s 49% stake in Vertical Theme Sdn Bhd which, in turn, owns 29.06% in AFG. Langkah Bahagia Sdn. Bhd owns the balance 51% in Vertical Theme.
“Accordingly, Temasek’s effective interest in AFG stands at 14.2%. The proposed transaction if successfully negotiated and completed, is not envisaged to trigger a takeover offer for AFG,” the Malaysian financial services entity said.
AFG shares rose 13 sen to RM4.02 at 11.05am. At that price, Temasek’s 14.2% stake comprising some 220 million shares is worth some RM884 million.
