DBS agrees to sell half of its shares in a large Philippine bank

Check out what's the next move for DBS.

DBS has agreed to sell part of its 20.3% stake (10.4%) in The Bank of the Philippine Islands (BPI) to Ayala Corp, Philippines’ oldest and largest conglomerate with businesses in real estate, financial services and telcos etc.

Total cash consideration will be S$757.3m and DBS will recognise a gain of S$450m from the transaction.

Following its divestment, DBS will retain a 9.9% interest in the bank and continue to have board representation.

According to CIMB, DBS’s partial stake divestment of BPI to Ayala Corp could be a move to boost its capital in preparation for its Danamon acquisition.

Here's more from DBS:

This could be a move to boost its balance sheet in preparation for its acquisition of Danamon in Indonesia. In recent months, we have been seeing consolidation in the financial industry in the region, as financial institutions attempt to build a pan-ASEAN/Asian presence.

We think there is scope for more consolidation as potentially weak equity markets could throw up acquisition opportunities. While banks’ funding could be constrained by tougher capital requirements under Basel III, Singapore banks, with one of the strongest capital buffers in the region, could be in a better position to take advantage of the opportunities.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia