Latest news with #Gunawan
The Star
04-07-2025
- Business
- The Star
Indonesia's Panin Bank deal falters on pricing mismatch; CIMB still keen — Reuters
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. - Reuters
Reuters
26-03-2025
- Business
- Reuters
DBS leading race to buy controlling stake in Indonesia's Panin Bank, sources say
Summary Companies Stake of 86% worth $1.8 billion as of Tuesday's close Binding bids due end-April or early May, sources say Deal could make DBS one of Indonesia's top 10 banks SINGAPORE/HONG KONG, March 26 (Reuters) - DBS Group ( opens new tab, Southeast Asia's top bank by assets, is the frontrunner to buy a controlling stake in Indonesia's Panin Bank ( opens new tab, three people with knowledge of the matter said. The Singapore lender was competing with Malaysia's CIMB Group ( opens new tab in the second round of the bidding process, according to one of the people. here. Roughly 86% of Panin Bank, Indonesia's 12th largest lender, is up for sale. As of Tuesday's market close, the combined holding owned by Australia's ANZ ( opens new tab and the Gunawan family was worth $1.8 billion. ANZ, which owns 39% according to LSEG data, has been trying to sell its stake since 2013. The founding Gunawan family is flexible about how much it might sell and the amount will depend on the offer price, sources have said. Binding bids for the stake are due by end-April or early May subject to market conditions, according to two of the people, who added that the thinking of the bidders could change. The sources declined to be identified as the matter was private. DBS, ANZ and CIMB declined to comment. Panin Bank's President Director Herwidayatmo referred Reuters' request for comment to its controlling shareholders. If successful, DBS' acquisition of the Panin Bank stake would be first deal under incoming CEO Tan Su Shan. Tan, who will assume the role on March 28, told Reuters this week that DBS is open to bolt-on acquisitions if they fit strategically, created additional value and are earnings accretive within an acceptable period of time. Analysts say the deal would propel DBS, which has a unit in Indonesia, to rank among the country's top 10 biggest banks. PT Bank DBS Indonesia has one head office and 33 other offices with 3,011 employees in 15 major cities, according to the DBS website. Panin Bank's businesses span consumer financing to private wealth. Singapore's Oversea-Chinese Banking Corp ( opens new tab and Japan's Sumitomo Mitsui also showed interest in the sale earlier on, sources have said. Panin Bank, formally known as Bank Pan Indonesia, was founded by Mu'min Ali Gunawan in 1971 and listed on the Jakarta stock exchange in 1982. Its net profit climbed 8.2% to 2.74 trillion rupiah ($165 million) last year as interest income rose and it provisions for bad debt fell. The bank's shares have plunged by about a fifth for the year to date, sliding along with other Indonesia stocks and the rupiah as investor jitters over government policy and the country's fiscal health grow. ($1 = 16,590 rupiah)
