DBS Group Holdings Ltd. got approval from Indonesia’s central bank to acquire a $2.75 billion stake in PT Bank Danamon Indonesia, giving Southeast Asia’s largest lender less control than it had sought.
DBS Group Holdings Ltd., which bid to acquire PT Bank Danamon Indonesia last year, extended a deadline to complete the deal with Temasek Holdings Pte by two months as the sale awaits approval from Indonesian regulators.
PT Bank Danamon Indonesia is trading at the biggest discount to any pending takeover offer in Asia, signaling arbitragers aren’t convinced that Singapore and Jakarta will resolve differences over bank access anytime soon.
DBS Group Holdings Ltd.’s bid for PT Bank Danamon Indonesia is set to be approved as soon as this month as Singaporean and Indonesian regulators near an agreement over bank access, according to Chairul Tanjung, an economic adviser to Indonesia’s president.
DBS Group Holdings Ltd., Southeast Asia’s biggest lender, rose to a two-week high on optimism its $7.2 billion bid for PT Bank Danamon Indonesia will be completed even as Indonesian authorities raise queries on its offer.
Olam International Ltd., the commodity trader that Muddy Waters LLC alleges is in danger of default, said banks hired to help sell $1.25 billion in bonds and warrants didn’t raise concerns about its credit position in discussions with shareholder Temasek Holdings Pte.