Singapore’s WongPartnership and Indonesia’s Hadiputranto, Hadinoto & Partners (HHP) are advising DBS Group Holdings, Southeast Asia's biggest bank, on its agreement to pay S$9.1 billion ($7.24 billion) for Indonesia's Bank Danamon in shares and cash, in a transaction that would create that country’s fifth-biggest lender.

WongPartnership declined to comment as the transaction is still ongoing.

Singapore-based DBS, which is making the move as part of its goal to become a leading Asia-wide bank, said on Monday it would initially pay S$6.2 billion in shares to buy a 67.37 percent stake from Singapore state investor Temasek Holdings.

It would then buy out Danamon's minority investors for cash, with both the share and cash payments pitched at 7,000 rupiah ($0.77) per Danamon share.

DBS said it would issue 439 million new shares to Temasek at S$14.07 each. The state investor already owns about 29 percent of DBS.

When combined with DBS' existing Indonesian assets, the acquisition would make DBS the country's fifth-largest lender.

In the same statement, DBS said Malaysia's central bank had allowed it to begin talks with a unit of Temasek to buy an effective 14 percent stake in Alliance Financial Group.

DBS had record net profit of more than S$3 billion ($2.39 billion) last year. Credit Suisse and Morgan Stanley are DBS's joint financial advisers.

More to follow

Follow us on Twitter: @ALB_Magazine