Bank: Sell cheap, gain more?

Was this the cheapest “bank sale” in the history of the world?

I refer to the article “Japan’s MUFG may succeed where DBS didn’t” (Straits Times, Dec 28).

It states that “On Tuesday, MUFG said it had agreed to buy an initial 19.9 per cent stake from Temasek Holdings and units affiliated with Singapore’s state investor.

The Japanese bank then plans to next year increase its interest to the 40 per cent foreign-investor limit, before applying to buy out all of the Temasek group’s holdings.

It seems this time, the Japanese may get lucky where the Singaporeans lucked out.”

In this connection – arguably, the real “biggie” historically – for bank ownership – may be the sale of POSBank to Temasek at a price of only $1.6 billion – without even an independent valuation or tender.

In 1998, DBS Bank bought POSBank (which had four million customers) from the Singapore Government for $1.6 billion, a 37% premium over its net tangible asset value.

A real bargain indeed!


Leong Sze Hian




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8 Responses to “Bank: Sell cheap, gain more?”

  • LIONS:

    It incurred HEFTY BAD LOANS during AFC n it shud be the one to be bought out by POSB BANK instead?!

    DBS could have been bankrupted if not for the RESCUE BY POSB to boost its books???

    Amd,what has POSB been making its PROFITS from?


    So,again MAINSTREET Sgs went to the RESCUE OF RAFFLES PL SGS?!


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  • Haigen Daiz:

    It must be really embarrassing to be a Singaporean these days. I scratch your back you scratch mine… Everyone knows the Govt. is in cahoots with corporations, that’s no secret. In June 2016, Temasek sold entire NOL stake for S$2.3b to French company CMA CGM. New French-based group of NOL reported a first-quarter net profit, of $86 million compared with a $100 million loss in the same period of 2016. With that in mind, CMA CGM has done what Neptune Orient Lines (NOL) could not do – make the company profitable again within 1 year. A domestic disgrace and an international pariah. How much of this was planned corporate marketing? We don’t know. We’ll never know. But one thing we know. This is a level of incompetence that any banana republic can only envy. The chief hides out while everyone else tries to figure out what’s happening.

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  • Ljttled:

    Soon sg pool will operate 24/7.
    No need up tax.

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  • Rabble-rouser:

    By now every S’poreans & even outsiders know our SWF’s investment strategy, ‘Buy high, then Sell @ leh-long prices’. It’s not their monies but CPF monies they are playing with. But 70% had voted for this.

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  • MarBowling:

    “In 1998, DBS Bank bought POSBank (which had four million customers) from the Singapore Government for $1.6 billion, a 37% premium over its net tangible asset value.”

    Response: HoLee shit$! Believe the decision to acquire POSB was made by a Secret Committee(consisted only FAMILEE members) and it was announced in Parliament that POSB on its own would NOT BE ABLE TO SURVIVE if it didn’t come under the umbrella of DBS(Dishourable Bank of Singapore)!

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  • Like Father Like Son:

    Many already knew this when POSB was forced to be acquired by DBS. The old man was still around during that time. POSB was flushed with cash, while DBS was a dying bank, propped by the PAP. With one stroke, the evil government stole the money from the people.

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  • asd:

    sell out the people ..

    now is sell out the country….

    GD Star Rating
  • Bystander:

    Hey, Indonesian Govt prefers the Japs than Singapore.
    It’s one way to fix the Lion City for harbouring not so clean money of their Nationals.

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