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DBS Completes Acquisition of Majority of Dao Heng Bank

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Offer Declared Unconditional

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With Dao Heng Bank Now a Subsidiary,
DBS is the Fourth Largest Bank in Hong Kong

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Integration to Commence Immediately

HONG KONG AND SINGAPORE, JUNE 29, 2001 - DBS Group Holdings Ltd (DBS) today opened its offer to acquire Dao Heng Bank Group Limited (Dao Heng). DBS then declared the offer unconditional after Guoco Group Limited ("Guoco") accepted the offer by tendering its 71.12% ownership in Dao Heng.

In accordance with the agreement with DBS, Guoco has elected to take the cash and share option. Through its 20% interest in DBS Diamond Holdings Ltd. Guoco will remain a minority shareholder of Dao Heng until the end of 2002. The offer opened today before noon and will remain open for a minimum of 21 days to enable other shareholders to participate.

Philippe Paillart, CEO of DBS, said, "Dao Heng is one of the premier consumer franchises in Hong Kong and we are proud to have it as a key part of the DBS family. Dao Heng and DBS together effectively create the first Asian regional bank, one with a strong presence in Hong Kong and Singapore, the two key banking Asian centres. The combination of DBS and Dao Heng coming together to join forces on the banking front will bring good things to all customers. We will combine knowledge and know-how, technology and continue to have a firm focus on serving banking customers, individual and corporate, locally and across borders."

Jackson Tai, President & COO of DBS said, "Today is another very exciting day for our customers, employees and shareholders. With the addition of Dao Heng, DBS is now the only Asian bank with a significant force in both key financial markets of Hong Kong and Singapore."

"We now move immediately to implement integration. Much advance work and planning has been invested to ensure that integration is efficient and seamless. We have developed more integration experience and know-how than any other bank in Asia and we have a proven track record in some of the more difficult markets and under demanding economic circumstances. Over the last three years, we have simultaneously and successfully integrated POSBank in Singapore, DBS Thai Danu Bank in Thailand and DBS Kwong On Bank in Hong Kong. We have staffed the Dao Heng integration team with some of our best people. And I am delighted that Randolph Sullivan will remain as Chief Executive Officer and board member of Dao Heng Bank and help lead the integration effort."

Randolph Sullivan said, "We will move quickly to realise maximum benefits. We are very enthusiastic about the combination of the two premier banks. I have spent a great deal of time with DBS over the last couple of months, and I am pleased to say we have very similar visions and goals. We both want to provide the best services to our customers at the lowest cost. I am looking forward to joining forces to build the best bank in Hong Kong and Asia. I am also very confident the integration will run smoothly and efficiently, as our systems, management, IT infrastructure and operations are compatible and share a common customer orientation."

The Dao Heng Offer

DBS announced its intention on April 11, 2001, to make a voluntary general offer for Dao Heng. Under the offer, Dao Heng shareholders will have the choice of accepting either (i) HK$60.01 per Dao Heng share or (ii) a package of HK$43.13 in cash and one share of its acquisition vehicle -- DBS Diamond Holdings Ltd. ("DDH"). On June 29, 2001, DBS announced the satisfaction of the pre-conditions of the offer and despatched the composite document. On the same day, the offer commenced and became unconditional upon the acceptance by Guoco. The offer will remain open for at least 21 days.

For more information regarding the Offer, Dao Heng shareholders should refer to the composite document.

About DBS

DBS Bank is the flagship bank of DBS Group Holdings in Singapore. It is ranked among the top banks in Asia and the world. A recognised leader in Internet banking and e-commerce, DBS is the market leader in Singapore-dollar loans and deposits, as well as equity and debt underwriting. Beyond Singapore, DBS Group serves corporate, institutional and retail customers through subsidiaries in Hong Kong, the Philippines, Indonesia and Thailand, and international banking services through a network of 13 overseas branches and offices. On June 22, DBS announced its intention to make a voluntary conditional takeover offer for Overseas Union Bank Limited, Singapore's fourth largest bank.

About Dao Heng

Dao Heng Bank Group Limited is one of Hong Kong's leading financial institutions with a network of 71 branches and 80 ATMs or electronic banking centres, supported by a modern call centre and Internet service channel as well as its overseas network.

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This press release is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

The Stock Exchange of Hong Kong Limited, Hong Kong Securities Clearing Company Limited, the Registrar of Companies in Hong Kong and the Registrar of Companies in Bermuda take no responsibility for the contents of this press release, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this press release.



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