DBS Group has emerged as a major candidate for gaining control of Indonesia Panin Bankaccording to people familiar with the issue, the Singapore bank will advance through the second round of bidding.
Potential transactions include sales of around 86% of Panin Bank, the country’s 12th largest lender.
The shares are held by Australia’s ANZ Group and the founding Granawan family, and are valued at around US$1.8 billion in market closures on Tuesday.
Reuters DBS currently reports that it is ahead of Malaysian CIMB Group in the bidding process.
ANZ, which owns 39% of Panin Bank based on LSEG data, has been considering withdrawing its investment since 2013.
The Gunawwan family is said to be flexible in how much the chances they will be sold depending on the offer rating.
Binding bids are expected by late April or early May, but the timeline may change based on market conditions.
Sources noted that bidder strategies could still evolve. All sources were refused to be identified because the discussion was private.
DBS, ANZ or CIMB have not commented on the issue. When contacted, Herwidayatmo, president of Panin Bank, introduced Reuters to the bank’s controlling shareholders.
If the acquisition goes on, it marks the first major deal below Incoming DBS CEO Tan Su ShanHe will take on the role on March 28th.
Tan told Reuters the bank remains Open to acquire Bolt-on It adjusts strategically and contributes to revenue within a reasonable time frame.
Analysts believe that successful bids could significantly expand DBS’ footprint in Indonesia and place it in the country’s top 10 banks.
DBS currently operates 34 offices via Indonesian unit Pt Bank DBS Indonesia, with over 3,000 employees in 15 cities.
Founded in 1971 by Mu’min Ali Gunawan and listed on Jakarta since 1982, Panin Bank operates beyond consumer finance and private wealth.
Previous interest in stocks was also shown by Singapore’s OCBC and Japan’s Mitsui Region, sources said.
Panin Bank reported net profits increased 8.2% last year to USD 165 million, supported by a strong interest income and reduced bad debt clauses.
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