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Singapore DBS seeks to buy Indonesia Bank Danamon

SINGAPORE (AP) -- Singapore bank DBS Group Holdings Ltd. says it plans to buy Indonesia's PT Bank Danamon for 9.1 billion Singapore dollars ($7.2 billion).

DBS said in a statement Monday that it has 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.

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.

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.

DBS said Indonesia's young population and strong economic growth made Danamon an attractive takeover target.