DBS Group Holdings said yesterday it was premature to comment on reports that negotiations to raise its 16 per cent stake in Thailand's TMB Bank have failed. Reuters reported on Wednesday, quoting TMB executives, that TMB had started talks on selling a stake to Dutch financial group ING after a breakdown in discussions with the Singapore bank over a US$1 billion rights issue.
'It is too premature to comment on the matter as the matter has yet to be finalised,' DBS said in a one-paragraph statement to the Singapore Exchange.
TMB had allowed ING to start due diligence on its financial position a week ago, the executives said.
TMB chairman Somchainuk Engtrakul declined to comment on ING's possible investment, but told Reuters he expected the bank to complete its capital raising effort in December.
Thailand's No. 5 lender had initially hoped to finalise its rights issue by June but delayed it because of ongoing negotiations with the Singapore bank.
The Thai lender hopes to raise new capital because of shrinking earnings and loan growth.
TMB has added about 20 billion baht (S$937.4 million) in provisions since late 2006, resulting in a 12.8 billion baht loss last year and an 18.1 billion baht loss in the first half of this year
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