KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
DBS Group Holdings has revised its ambitions in Malaysia, trimming its proposed acquisition of Alliance Bank Malaysia Bhd to a 30% stake after regulators signalled they would not support a larger deal, according to people familiar with the matter.
Southeast Asia’s largest bank had initially sought approval to negotiate for as much as 49% of Alliance Bank, a size that would require Bank Negara Malaysia (BNM) to grant a rare ownership waiver. The central bank declined to entertain that request, prompting DBS to withdraw and refile a proposal aligned with Malaysia’s 30% ownership limit.
The smaller proposal is expected to have a smoother path, the people said, and would allow DBS to formally engage Alliance’s major shareholder, Vertical Theme Sdn Bhd — a Malaysian holding company partly owned by Singapore’s Temasek Holdings. Temasek indirectly owns 49% of Vertical Theme through Duxton Investment & Development and also holds 28.3% of DBS.
Representatives from DBS and Vertical Theme declined to comment. Alliance Bank said it was not aware of the matter, and BNM reiterated its policy of not commenting on acquisition applications involving regulated institutions.
A successful stake purchase would give DBS long-sought access to Malaysia’s retail and SME banking market, where its Singapore peers OCBC and UOB already operate. Alliance Bank, with a market value of RM7.9 billion, rose 2.5% on Monday — its sharpest gain in nearly two months.
Key Takeaways
DBS revises its target from 49% to 30%
The initial proposal required an extraordinary waiver from BNM, which the regulator did not support.
A 30% stake fits Malaysia’s foreign ownership rules
The revised application increases the likelihood of approval and opens the door for discussions with Alliance’s main shareholder.
Strategic push into Malaysia
A deal would give DBS a foothold in a market where other Singaporean banks already operate, strengthening regional competition.
Alliance Bank shares jump
The stock rose 2.5% following the news, the biggest move since early October.
Temasek’s influence looms over both sides
The Singapore state investor is a major shareholder of DBS and indirectly of Alliance’s holding entity.
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