DBS Group Holdings (DBSM.SI) announced on Friday that it is increasing its stake in China’s Shenzhen Rural Commercial Bank by S$376 million ($284.72 million) in order to capitalize on growing opportunities in the Greater China region.
DBS Bank, the largest lender in Southeast Asia, will increase its stake in the unlisted Chinese bank to 16.69% from 13%.
DBS said it will buy 383.6 million shares at 5.52 yuan per share and will fund the transaction with internal cash reserves.
Since the beginning of the year, the lender has been in talks with Shenzhen Huaqiang Asset Management Group about acquiring their stake in Shenzen.
According to DBS, the transaction will be immediately accretive to earnings and return on equity.