DBS chairman defends $6.2 billion of new shares to Temasek
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DBS chairman defends $6.2 billion of new shares to Temasek
Bank chairman defends contentious offer as best option
Published on Apr 26, 2012
DBS Group Holdings chairman Peter Seah on Wednesday defended the bank's contentious decision to issue $6.2 billion worth of new shares to Temasek Holdings.
The shares are being used to buy a 67 per cent stake in Indonesia's Bank Danamon from Temasek - raising concerns among some DBS shareholders that the value of their own shares will be diluted.
Mr Seah said that the DBS board had no intention of going to its shareholders to raise funds for the purchase.
Background story
UNEQUAL AND UNFAIR
'What we have been harping on is the inequality between Temasek and the minority shareholders, who are not given a chance to pay for Danamon, resulting in dilution. This is not fair.'
A shareholder at the AGM
Some DBS shareholders questioned whether DBS had looked at alternatives to issuing new shares to Temasek. This could involve selling bonds to pay for Bank Danamon and thus minimise the dilution effect on their shareholdings
DBS Group Holdings chairman Peter Seah believes issuing new DBS shares to Temasek is the best option. The shares are being used to buy a 67 per cent stake in Indonesia's Bank Danamon from Temasek. But some DBS shareholders are worried this will dilute the value of their own shares. -- PHOTOS: STEPHANIE YEOW, REUTERS
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Please be more understand, Temasek had make more "Long Term Investment" overseas and it don't look good on their account book, so of cos the local biz in SG must help to make the account book for Temasek to look good.
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Was this even reported in the ST?
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very clever
shares for shares swap at a glance
who lose out if the Indonesian bank goes bankrupt?