DBS Bank confirms bid for majority ownership
of Korea Exchange Bank
SEOUL & SINGAPORE, March 13, 2006 - DBS Bank confirmed today that
it submitted a bid to acquire a majority ownership stake in Korea Exchange
Bank (“KEB”) from the Lone Star investor group.
KEB has a strong customer franchise and leading market shares in foreign
exchange, trade finance and corporate banking. If selected as the strategic
partner, DBS Bank will grow KEB’s banking franchise, providing KEB’s
customers with a wider choice of preferred banking services. DBS Bank
will bring its management resources, regional network, product development
capabilities and risk management skills to benefit all KEB stakeholders
including KEB customers, employees and shareholders.
DBS Bank has no overlapping operations with KEB in Korea. Our goal is
to build on KEB’s strengths and create a leading Korean bank with
scale, international resources and capabilities.
DBS Bank has structured its bid based on stand-alone valuation to deliver
earnings accretion to existing shareholders.
There is no assurance that DBS Bank will be selected as the preferred
bidder in the auction process, which is a competitive process. DBS Bank
will make further announcements on its bid at the appropriate time.
About DBS
DBS Bank has maintained a presence in Seoul since 1981, when it was granted
a banking branch license. Headquartered in Singapore, DBS is one of the
largest financial services groups in Asia with almost five million customers
and operations in 14 markets. The largest bank in Singapore and the fifth
largest banking group in Hong Kong as measured by assets, DBS’ "AA-"
and "Aa2" credit ratings are among the highest in the Asia-Pacific
region. DBS has leading positions in consumer banking, treasury and markets,
asset management, securities brokerage, equity and debt fund raising.
Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate,
institutional and retail customers through its operations in China, India,
Indonesia, Malaysia, Thailand and The Philippines. More information about
DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.
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