Published on Apr 26, 2012
DBS Group Holdings chairman Peter Seah on Wednesday defended the
bank's contentious decision to issue $6.2 billion worth of new
shares to Temasek Holdings.
The shares are being used to buy a 67 per cent stake in
Indonesia's Bank Danamon from Temasek - raising concerns among some
DBS shareholders that the value of their own shares will be
diluted.
Mr Seah said that the DBS board had no intention of going to its
shareholders to raise funds for the purchase.
UNEQUAL AND UNFAIR
'What we have been harping on is the inequality between Temasek
and the minority shareholders, who are not given a chance to pay
for Danamon, resulting in dilution. This is not fair.'
A shareholder at the AGM
Some DBS shareholders questioned whether DBS had
looked at alternatives to issuing new shares to Temasek. This could
involve selling bonds to pay for Bank Danamon and thus minimise the
dilution effect on their shareholdings
DBS Group Holdings chairman Peter Seah believes
issuing new DBS shares to Temasek is the best option. The shares
are being used to buy a 67 per cent stake in Indonesia's Bank
Danamon from Temasek. But some DBS shareholders are worried this
will dilute the value of their own shares. -- PHOTOS:
STEPHANIE YEOW, REUTERS
