ANZ Indonesian Expansion Hits Road Block

Post by Sharat on June 15, 2010 · Under Business News, Company News, International Business News, Mergers & Acquistions, banking · Comment 

Australian banking major ANZ, which has bold ambitions to transform itself into a super-regional lender, may be forced to put on hold an audacious plant to acquire a $1.4 billion stake in Indonesia’s Bank Panin, after it said its majority investor made the disclose that his stake in Panin was not for sale.

ANZ was the preferred bidder in the race to acquire the stake, since it already owned a 38.8 per cent share in the Indonesian bank, ahead of rival bidders Standard Chartered and Spain’s BBVA.

ANZ currently operates a joint venture with Panin, which is being used to transfer the assets in Indonesia acquired from Royal Bank of Scotland, an arrangement that was finalized on Monday.

Despite its Asian aspirations, its Indonesian plans were dealt a body blow, when it was revealed that Mukmin Ali Gunawan, the largest share holder in Panin had no plans to sell his existing stake in the lender despite receiving several offers.

“He has a strong commitment to develop the bank and isn’t in a dire need to get cash,” a source at Panin Group told Dow Jones Newswires.

Analysts estimate the stake to be worth as much as $1.4 billion, and many were surprised by the revelation that the aging patriarch wished to retain control, since Panin had already mandated UBS to advise it on the transaction.

A spokesperson for ANZ said the lender intended to maintain its stake in Panin, and wishes to expand the existing joint venture between the two lenders.

“Our 39 per cent stake is a strategic investment, which is an important part of our super regional strategy and we are committed to working with other shareholders to grow and develop the bank over the long term,” he said.

Panin is the seventh-largest lender in Indonesia and has 364 branches across the nation. The Gunawan family holds 46 per cent of the bank and the stake is eventually expected to be sold.


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