JAKARTA (Yosefardi) – Shares of PT Bank Danamon Tbk (BDMN) dropped 12% to Rp4,550 this morning following report saying Singapore-based DBS Groups Holdings Lts has canceled its acquisition plan over Bank Danamon.
The sales and purchase agreement (SPA) for the acquisition of Bank Danamon was already due today (August 1). However Piyush Gupta, DBS CEO, said DBS is still committed to invest and expand its business network in Indonesia.
Media earlier reported DBS may acquire 67.7% shares in Danamon if Monetary Authority of Singapore (MAS) gives easier access to state banks (Mandiri, BRI, and BNI) to open branches in the sity State.
Bank Indonesia (BI) and MAS yet to sign agreement (reciprocity principle), then DBS is only allowed to acquire 40% shares of BDMN.