ANZ may ditch stake in Panin Bank
With tough new capital rules making minority partnerships more expensive for banks, Reuters reported on Tuesday that Japan's Mizuho Financial Group had approached ANZ to buy the 39 per cent stake in Panin.
An ANZ spokesman would not confirm the report, but chief executive Mike Smith has previously indicated he would be open to selling the stake at the right price.
Under new banking rules, minority stakes in overseas lenders have become much more capital-intensive.
Asian-focused ANZ last year sold its stake in Vietnamese lender Sacombank, and in April Mr Smith said the lender would examine treatment of minority holdings.
Citi analyst Craig Williams said ANZ would be likely to want to sell the stake in question and some other big banks may sell their foreign minority holdings.
The deal would not mark an exit from the Indonesian market for ANZ, which also has 28 branches of its own and 1100 staff in the country.
Frequently Asked Questions about this Article…
Reports say ANZ is in talks to sell its 39% stake in Indonesian lender Panin Bank, in a transaction that could be worth up to $600 million, according to Reuters.
Japan's Mizuho Financial Group is reported to have approached ANZ to buy the 39% stake in Panin Bank.
ANZ reportedly owns a 39% stake in Panin Bank, and the potential deal has been described as being worth up to $600 million.
The article says new banking capital rules have made minority stakes in overseas lenders much more capital‑intensive, and ANZ’s CEO Mike Smith has previously said he would be open to selling such stakes at the right price.
No. An ANZ spokesman would not confirm the Reuters report, although CEO Mike Smith has previously indicated openness to selling the stake under the right conditions.
No. The article notes that a sale of the Panin stake would not mark an exit from Indonesia—ANZ also operates 28 branches in the country and has about 1,100 staff there.
According to Citi analyst Craig Williams, ANZ would likely want to sell the stake and some other big banks may also look to sell their foreign minority holdings because of the tighter capital treatment.
The report suggests ANZ is reviewing minority overseas holdings in light of new capital rules. For investors, that could signal management is actively managing capital and may continue to divest minority stakes where it makes sense—but ANZ has not confirmed any deal.
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