DBS Group Holdings has extended its agreement with Temasek Holdings to buy the Singapore state investor’s controlling stake in Indonesia’s Bank Danamon.
The deadline for the purchase has been extended for two more months, with the “long-stop date”, or last date for the agreement, being extended until 1 August.
DBS added in a statement that the share purchase agreement will lapse unless both parties mutually agree to a further extension.
Indonesia’s central bank gave DBS the green light to buy only a 40-per-cent stake in Danamon.
Singapore-based DBS proposed a majority takeover in April 2012, which would have cost it around US$7.2 billion.
Indonesia’s financial regulator, which will have oversight of the banking sector from next year, supports a maximum 40-per-cent ownership limit rule for banks. The ownership cap is a key element of a new law Indonesian legislators hope to enact next year.