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
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
"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
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.
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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an invitation or offer to acquire, purchase or subscribe for securities.
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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.