DBS buys stake in BSA

DBS buys stake in BSA

SINGAPORE (Reuters): DBS Bank said yesterday that it had signed an agreement to buy a majority interest in the Bank of Southeast Asia, Inc, in the Philippines.

A DBS bank statement said it had signed an acquisition agreement, a subscription agreement and other documents to acquire the Bank of Southeast Asia (BSA).

DBS will buy 4.28 million shares constituting 30 percent of BSA's existing share capital and subscribe approximately 12 million new BSA share increasing its shareholding interest to about 60 percent of the enlarged Philippine bank.

The ASB group of companies will remain the largest Philippine shareholder with about 28 percent interest in BSA.

DBS the total purchase including subscription of new shares is estimated at 1.7 billion Philippine pesos.

After the capital injection, BSA's shareholders' funds will increase to 2.8 billion pesos from 1.5 billion pesos.

DBS said the name of BSA will be changed at an appropriate time to reflect majority shareholding by the DBS Bank.