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DBS to pay $7. 2 billion for Indonesia’s Bank Danamon

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SINGAPORE/JAKARTA (Reuters) – DBS Group Holdings , Southeast Asia’s biggest bank, has agreed to pay $7. 24 billion for Indonesia’s Bank Danamon , offering a 52 percent premium for a middle-ranking lender with high funding costs, raising questions on the price. The takeover, Asia’s fourth-largest financial services deal, would make Singapore-based DBS the fifth-biggest lender in Indonesia, one of the region’s hottest markets where bank penetration is low and annual loan growth runs at 20 percent. . . .

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