SINGAPORE (AP) -- Singapore bank DBS Group Holdings Ltd. said Monday it plans to buy Indonesia's PT Bank Danamon for 9.1 billion Singapore dollars ($7.2 billion) in a bid to expand its business in Southeast Asia.
DBS agreed to purchase a 67.4 percent stake in Danamon from a unit of Singapore state investment fund Temasek Holdings, by issuing SG$6.2 billion of new stock, the bank said.
DBS said it will seek to buy the remaining shares through a SG$2.9 billion cash offer at 7,000 Indonesia rupiahs (76 cents) per share, a 52 percent premium above Bank Danamon's closing price Friday.
The Singapore company said its strategy is to become a leading bank in Asia with a focus on its key markets of Greater China, South Asia and Southeast Asia.
DBS said it plans to complete the deal in the second half of this year after seeking regulatory and shareholder approval in Singapore and Indonesia.
Danamon is a commercial bank in Indonesia with approximately 3,000 branches and 6 million customers.
DBS said it plans to merge Danamon with DBS Indonesia to form one of the five biggest banks in Indonesia, which has a population of about 240 million.