DBS offers to buy 100 pct of Dao Heng; Guoco agrees to sell 71.3 pct stake

SINGAPORE (AFX-ASIA) - DBS Group Holdings Ltd said the bank, via its  wholly-owned subsidiary DBS Diamond Holdings Ltd, has proposed to buy all of  Dao Heng Bank Group Ltd, offering two options to its shareholders.	    In a statement, DBS said Guoco has given its undertaking to accept to  sell its 71.3 pct stake in Dao Heng Group.	    Under the first option, DBS will offer 60.14 hkd for each Dao Heng Group  share, which is a 59.9 pct premium over the closing price of Dao Heng on  April 4.	    The cash option values Dao Heng Group at about 41.918 bln hkd.	    DBS is also offering a second option comprising 43.26 hkd in cash and one  DBS Diamond share for each Dao Heng share.	    The new shares will not be readily tradeable and will be subject to put  and call options at the purchase price of 21.70 hkd per share and may be  exercised within the seven business days after end-2002.	    Should Guoco take up all the cash and share options, it will end up with  a 20 pct stake in DBS Diamond. 

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