DBS Acquired POSB
Monday, 16th November 1998
DBS Bank fully acquired The Post Office Savings Bank (POSB or POSBank) our nation's beloved "People's bank" and POSB ceased to exist as a statutory board under the Ministry of Finance. The integration of both banks allowed customers of either bank to share the facilities; DBS Bank depositors may use the Cash Deposit Machine installed islandwide in POSBank branches, likewise for POSBank depositors.
DBS Bank's proposal to purchase all the assets and liabilities of POSBank except for the proposed POSBank headquarters premises currently under construction, and certain equity and bond securities, for a purchase consideration of $1.6 billion. DBS Bank will be acquiring total deposits (total liabilities) of $25.5 billion and total assets of $26.9 billion as at 30 June 1998. POSBank’s adjusted net tangible assets as at 30 June 1998 was $1.164 billion. The purchase consideration of $1.6 billion, which represents a multiple of 1.37x the adjusted net tangible assets is considered by most as undervalued.