In a significant development in Indonesia’s banking landscape, Australian lender ANZ and the Gunawan family are contemplating a sale of their combined controlling interest in Bank Pan Indonesia Tbk PT (Panin Bank). This Jakarta-listed institution, founded by the Gunawan family in 1971, is valued at approximately $2.4 billion, following a year-to-date share increase of about 29%.
Sources familiar with the situation reveal that the Gunawan family, which currently holds a 46.52% stake, is open to selling down their holdings. This move aligns with ANZ’s long-standing intention to exit its 39.22% stake in Panin Bank, a goal that has been stymied for years due to concerns over valuation.
To facilitate the sale, both shareholders have enlisted Citigroup to manage the process, with marketing materials already distributed to potential buyers. However, formal negotiations are still weeks away. The Gunawan family is flexible regarding the size of the stake they might sell, contingent on the offer price.
ANZ’s efforts to divest its stake date back to 2013, but challenges surrounding valuation have hindered progress. The bank originally acquired a 29% interest in Panin Bank in 1999, later increasing it. Past auction attempts attracted interest from major Japanese banks like Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, but no agreements were finalized.
This potential sale reflects ANZ’s broader strategy to streamline its business by reducing exposure to low-returning sectors, particularly in retail and wealth banking across Asia. Earlier this year, ANZ also exited its investment in Malaysian lender AMMB Holdings, selling its stake for nearly $149 million.
At 85 years old, Mu’min Ali Gunawan, the bank’s founder, remains the ultimate beneficiary of the family’s shareholding. His children, Chandra and Lionto Gunawan, continue to play key roles within Panin Bank as commissioner and director, respectively.
Despite the ups and downs, Panin Bank faced an 8.16% drop in net profit last year, reporting 3.01 trillion rupiah ($195.65 million) due to declining net interest income, according to its 2023 annual report. As discussions around the sale evolve, all eyes will be on how this will reshape the future of Panin Bank and its stakeholders.
hii Aditi Sahu this side..
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