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DBS to raise stake in China’s Shenzhen Bank By Reuters

DBS to raise stake in China’s Shenzhen Bank By Reuters


© Reuters.

(Reuters) – DBS Group (OTC:) Holdings said on Friday it was increasing its stake in China’s Shenzhen Rural Commercial Bank in a S$376 million ($284.72 million) deal, as it seeks to exploit growing opportunities in the Greater China region.

DBS Bank, a subsidiary of Southeast Asia’s largest lender, will increase its stake in the unlisted Chinese bank from 13% to 16.69%.

The bank will acquire 383.6 million shares at a price of 5.52 yuan per share, DBS said, adding that it intends to finance the transaction from its internal cash resources.

The lender had been in discussions with Shenzhen Huaqiang Asset Management Group since the start of the year to acquire its stake in Shenzen.

The transaction is expected to be immediately accretive to earnings and return on equity, DBS said.

($1 = 1.3206 Singapore dollars)

(This story has been refiled to correct the spelling of Shenzhen in the headline and paragraph 1)



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