DBS to raise stake in China’s Shenzhen Bank

(Reuters) – DBS Group (OTC:) Holdings said on Friday it was raising its stake in China’s Shenzhen Rural Commercial Bank in a S$376 million ($284.72 million) deal, as it looks to tap into growing opportunities in the Greater China region.

DBS Bank, a unit of Southeast Asia’s largest lender, will increase its stake in the unlisted Chinese bank to 16.69% from 13%.

The bank will acquire 383.6 million shares at 5.52 yuan per share, DBS said, adding it intends to fund the transaction from its internal cash resources.

The lender had been in discussions with Shenzhen Huaqiang Asset Management Group since the start of the year to acquire their interest in Shenzen.

The deal is expected to be immediately accretive to earnings and return on equity, DBS said.

($1 = 1.3206 Singapore dollars)

(This story has been refiled to correct the spelling of Shenzhen in the headline and paragraph 1)