SINGAPORE – Singapore’s DBS Group has dismissed market speculation of a potential merger between its Indonesian subsidiary and PT Bank Central Asia Tbk (BCA), the largest private bank in Indonesia.
In recent days, talk had spread on social media platforms in Indonesia that PT Bank DBS Indonesia could be merged into BCA, leaving BCA the surviving entity.
The social media posts also detailed that DBS Indonesia shareholders would receive newly issued BCA shares as a compensation.
“There is no truth to this rumour,” a DBS spokesman said in response to queries.
On Oct 28, BCA share price surged 7%, with the unconfirmed rumour cited as the reason for the spike.
PT Bank DBS Indonesia is a subsidiary of DBS Bank in Singapore. It provides corporate, small medium enterprise, consumer, and wealth management banking services across Indonesia.
The Jakarta-headquartered BCA is Indonesia’s largest private bank by market capitalisation, with the Hartono brothers as the ultimate controlling shareholders.
The bank’s stock was among those mentioned as attractive options to buy when the Jakarta Composite Index (JCI) fell sharply earlier this year, following MSCI’s warning.
