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DBS said to revise Alliance Bank offer proposal to 30% stake — Bloomberg

Elffie Chew & Manuel Baigorri / Bloomberg
Elffie Chew & Manuel Baigorri / Bloomberg • 2 min read
DBS said to revise Alliance Bank offer proposal to 30% stake — Bloomberg
An Alliance Bank deal would give DBS a footprint in Malaysia, where Singaporean rivals Oversea-Chinese Banking Corp and United Overseas Bank Ltd already have a presence. Photo: Bloomberg
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(Nov 24): Singapore’s biggest bank has withdrawn an application to start talks to buy as much as 49% of Alliance Bank Malaysia Bhd (KL:ABMB), replacing it with one to acquire up to 30% instead, people with knowledge of the matter said.

DBS Group Holdings Ltd made the decision after failing to get approval from the Malaysian central bank for its initial request, which would’ve required a waiver because generally a company can only buy as much as 30% of a financial institution in the country, the people said.

The revised request should have a better chance of being approved by Bank Negara Malaysia, the people said, asking not to be identified because the information is private.

That would pave the way for DBS to engage with Alliance’s largest shareholder, Vertical Theme Sdn Bhd, a Malaysian holding company backed by Singapore state investor Temasek Holdings Pte, the people said. Temasek has a 49% stake in Vertical Theme via Duxton Investment & Development Pte. It also holds about 28.3% of DBS.

Representatives for DBS and Vertical Theme declined to comment. A spokesperson for Alliance said the company wasn’t aware of the matter. A representative for the Malaysian central bank said BNM doesn’t comment on applications of acquisitions or disposals of interest in shares of regulated entities.

An Alliance deal would give DBS a footprint in Malaysia, where Singaporean rivals Oversea-Chinese Banking Corp and United Overseas Bank Ltd already have a presence. DBS is Southeast Asia’s largest bank by total assets.

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Alliance’s shares rose 2.5% in Kuala Lumpur on Monday, the biggest gain since Oct 2 and trimming their loss this year to about 4%. The city’s main benchmark is down 1.4% in 2025. Alliance has a market capitalisation of about RM7.9 billion ($2.5 billion).

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