04-07-2025
Indonesia's Panin Bank stake sale stalls over pricing mismatch, sources say
SINGAPORE/HONG KONG - The sale of a controlling stake in Jakarta-listed Bank Pan Indonesia or Panin Bank by ANZ and Indonesia's Gunawan family has stalled due to a mismatch on pricing, three sources with knowledge of the matter said.
The combined stake represents roughly 86% of Panin Bank, which was worth about $1.45 billion based on Friday's share price of 1,140 rupiah per share on the Jakarta Stock Exchange.
The Gunawan family, which holds around 46.5%, according to LSEG data, is open to paring down its stake. Australian bank ANZ owns about a 39.2% stake.
Earlier this year, the sale had drawn interest from regional lenders, like CIMB Group and DBS Group. But both banks did not submit binding bids as they were unable to meet the sellers' valuation expectations, said the sources.
The sellers were seeking a price tag of more than twice the Panin Bank's current price-to-book ratio, one of the sources said.
Panin Bank's was traded at 0.75 times book in first quarter ended March 2025, according to LSEG data.
The sale process, run by Citigroup, could resume if the price gap could be reduced, said the sources, who declined to be named as the matter was private.
CIMB is still interested and open to talks, one of the sources added.
ANZ, Citi, DBS declined to comment.
Panin Bank President Director Herwidayatmo said the bank's management is not involved in that process and referred Reuters' query to the controlling shareholders.
The Gunawan family could not be reached for comment. CIMB did not respond to an email request seeking comment.
ANZ and the Gunawan family initiated a sale process together last year, putting the combined controlling stake on the block.
The sale comes as part of ANZ's strategy to shrink low returning business lines and reduce exposure to retail and wealth banking in Asia to boost return on equity.
Panin Bank was founded by Mu'min Ali Gunawan in 1971 and listed on the Jakarta stock exchange in 1982. Its businesses span consumer financing to private wealth, according to its website. ($1 = 4.2240 ringgit) ($1 = 16,190.0000 rupiah)
(Reporting by Yantoultra Ngui in Singapore and Kane Wu in Hong Kong. Additional reporting by Stefanno Sulaiman in Jakarta. Editing by Jane Merriman)
