DBS Bank has entered into an agreement to sell a 77.8% stake in electronic service delivery network AXS to Tower Capital Asia.
No consideration amount was revealed in DBS’s announcement on July 11.
After the completion of the transaction, which is expected to happen by August, DBS will retain a minority stake of 9.9% in AXS.
AXS was incorporated in 2000 and subsequently became a subsidiary of DBS in 2006. It currently has over 660 AXS stations across Singapore. It also provides a suite of online and mobile services.
Tower Capital Asia says that there are no immediate plans to implement any material changes to AXS’s operations yet.
The transaction is not expected to have any material impact on the earnings or net tangible asset (NTA) of DBS Group Holdings Ltd. for the FY2023 ending Dec 31.
See also: MAS Financial Stability Review shows local banks can withstand multiple shocks
Shares in DBS closed 24 cents higher or 0.78% up at $30.91 on July 10.
