DBS Cuts Alliance Bank Stake Bid to 30%

The DBS Alliance Bank stake proposal has been scaled back, with the Singapore lender reducing its request for approval to acquire up to 30% of Alliance Bank Malaysia, replacing an earlier bid of up to 49%, according to reports.

The larger stake required an exemption under Malaysia’s foreign-ownership cap for banks and had not received regulatory clearance.

If approved, the revised application will allow DBS to open talks with Alliance’s biggest shareholder, Vertical Theme, a Malaysian holding company backed by Temasek — which is also a major DBS shareholder.

A deal would give DBS long-sought retail banking access in Malaysia, where Singapore rivals OCBC and UOB already operate. The DBS Alliance Bank stake move marks a strategic step in DBS’s regional expansion strategy.