DBS Group Holdings Ltd., which bid to acquire PT Bank Danamon Indonesia last year, extended a deadline to complete the deal with Temasek Holdings Pte by two months as the sale awaits approval from Indonesian regulators.
The parties set a tentative date of June 2, said Karen Ngui, a Singapore-based spokeswoman for DBS. The earlier agreement ran through April 2, she said. Jeffrey Fang, a Singapore-based Temasek spokesman, confirmed the contract has been extended.
The sale has been left on hold as Indonesia’s central bank considers approval while seeking greater access for its own lenders in Singapore. Regulatory approval would help DBS gain access to more profitable lending opportunities and a faster-growing economy.
Bank Indonesia is still processing DBS’s bid, central bank Governor Darmin Nasution said last week.
DBS said last April it would acquire 99 percent Danamon for 66.4 trillion rupiah ($6.8 billion rupiah), with the equivalent of 45.2 trillion rupiah of that to be paid to Temasek for its 67.4 percent stake.